KOSPI 1ten-thousand2000 possibility raised, foreign investors sell about 70trillion won

As KOSPI has continued its run of record highs since the beginning of the year, foreign investors have continued large-scale selling. On the securities market, from 7 last month through 8 this month, foreign investors sold approximately 70 trillion won worth of shares net. During this period, the index recorded a new high.

Market analysts interpreted the selling as mechanical selling arising during a portfolio-weight adjustment process, rather than being caused by a deterioration in the fundamentals of Korean stocks. They explained that asset managers accelerated position reductions as client requests to sell increased. As a result, selling volume became concentrated over a short period.

An investment bank forecast that KOSPI could reach 1ten-thousand2000 at the current level. The forecast was presented on the basis of the recent surge in the index and expanded positions. The investment bank mentioned a technical correction in the market.

Global investment banks also took notice of foreign capital flows. Net foreign selling affected market liquidity, particularly among large-cap stocks. In some sectors, trading value was reported to have expanded beyond usual levels.

The selling was confirmed to have caused short-term changes in supply and demand. At this point, the scale of foreign selling and the index level are being monitored simultaneously. Whether additional specific selling occurs or buying resumes must be confirmed through data released later.