South Korea's KOSPI and KOSDAQ indices fell Thursday as retail investors engaged in heavy selling following two days of sharp market declines [1].
The downturn signals deepening anxiety among individual traders, whose mass exit from positions is overriding positive corporate news and offsetting buying activity from foreign entities.
The KOSPI index dropped 1.2% to close at 5,594 points [1]. The KOSDAQ index saw a steeper decline, falling 2.7% to finish at 645 points [1].
Market volatility remained high throughout the session. A YTN reporter said the KOSPI fluctuated by nearly 430 points before the final close [1].
Retail investors drove the downward trend by selling a net 1.4 trillion won on the KOSPI during the day [1]. This contributed to a cumulative net sell of 3.4 trillion won by individual investors over the two-day period of decline [1].
In contrast, foreign investors maintained a bullish stance, recording a net buy of 1.5 trillion won across the KOSPI and KOSDAQ [1].
The market experienced a brief rally early in the session sparked by Samsung Electronics, which reported record-breaking earnings [1]. However, the momentum vanished as investors moved to realize profits, leading the stock to close lower [1].
A YTN anchor said the market appeared to be recovering after two consecutive days of crashes, but it ultimately faced another decline [1].
“The KOSPI index dropped 1.2% to close at 5,594 points.”
The divergence between retail and foreign investors suggests a crisis of confidence among domestic traders. While foreign capital is flowing into the market, the panic-selling by individual investors indicates that fear of further volatility is outweighing fundamental strengths, such as the strong earnings reported by Samsung Electronics.
