Key Takeaways
- • Foreign investors have net sold 30.345 trillion won in KOSPI-listed stocks from the 6th of last month through 10:01 a.m. on Friday, according to the Korea Exchange.
- • The KOSPI fell 8.39% to 4,931.93, triggering a circuit breaker at 9:03 a.m. that halted trading for 20 minutes.
- • Retail investors, who had bought 13.9756 trillion won over the same period, turned net sellers on Friday morning with 95.6 billion won in net sales after 2.4325 trillion won of buying the previous day.
- • Pension funds, which had bought stocks for five straight sessions totaling 1.4222 trillion won, halted buying and turned net sellers with 32.4 billion won in sales.
- • The National Pension Service has not added to its domestic equity weight since March-April of last year, a period tied to the KOSPI falling below 2,500 on U.S. tariff shocks.
Summary
The KOSPI plunged sharply on Friday, triggering a circuit breaker in the early morning session and halting trading for 20 minutes after the index fell 8.39% from the prior session to 4,931.93. The sell-off marked a shift in flows across investor groups, with individual investors and pension funds both moving to net selling.
According to the Korea Exchange, foreigners have made net sales of 30 trillion 345.5 billion won in the domestic stock market from the 6th of last month through 10:01 a.m. on Friday. Over the same period, retail investors made net purchases of 13 trillion 975.6 billion won, while pension funds recorded cumulative net purchases of 1 trillion 232.1 billion won. Foreigners have been net sellers for six consecutive trading days since the 30th of last month, with net sales of 10 trillion 209.8 billion won over the five sessions through the prior day, including 3 trillion 794.3 billion won on the previous day alone.
As of 10:01 a.m. on Friday, based on provisional figures, foreigners had net sold 391.1 billion won. Retail investors, who had bought 2 trillion 432.5 billion won the previous day, were net sellers of 95.6 billion won. Institutional investors were net buyers of 399.1 billion won, led by financial investment firms at 567.5 billion won, while private equity funds and investment trusts were net sellers of 63.8 billion won and 53.8 billion won, respectively. Pension funds, which had bought stocks for five consecutive sessions through the prior day for net purchases of 1 trillion 422.2 billion won, reversed to net sales of 32.4 billion won.
The National Pension Service, the largest institutional investor in Korea's domestic market, is drawing attention because it postponed rebalancing of domestic stocks from this year through July. Some market observers have suggested it could act as a "firefighter" by buying during sharp declines to support prices. The NPS does not publicly disclose its real-time trading volumes or supply-demand data. According to an official familiar with pension fund matters, the NPS has not increased its domestic equity weight through buying since March-April of last year, when the KOSPI fell below 2,500 on U.S. tariff shocks, though its domestic equity weight has risen at times when rapid rallies lifted the value of its holdings.
According to the Korea Exchange, foreigners have made net sales of 30 trillion 345.5 billion won in the domestic stock market from the 6th of last month through 10:01 a.m. on Friday. Over the same period, retail investors made net purchases of 13 trillion 975.6 billion won, while pension funds recorded cumulative net purchases of 1 trillion 232.1 billion won. Foreigners have been net sellers for six consecutive trading days since the 30th of last month, with net sales of 10 trillion 209.8 billion won over the five sessions through the prior day, including 3 trillion 794.3 billion won on the previous day alone.
As of 10:01 a.m. on Friday, based on provisional figures, foreigners had net sold 391.1 billion won. Retail investors, who had bought 2 trillion 432.5 billion won the previous day, were net sellers of 95.6 billion won. Institutional investors were net buyers of 399.1 billion won, led by financial investment firms at 567.5 billion won, while private equity funds and investment trusts were net sellers of 63.8 billion won and 53.8 billion won, respectively. Pension funds, which had bought stocks for five consecutive sessions through the prior day for net purchases of 1 trillion 422.2 billion won, reversed to net sales of 32.4 billion won.
The National Pension Service, the largest institutional investor in Korea's domestic market, is drawing attention because it postponed rebalancing of domestic stocks from this year through July. Some market observers have suggested it could act as a "firefighter" by buying during sharp declines to support prices. The NPS does not publicly disclose its real-time trading volumes or supply-demand data. According to an official familiar with pension fund matters, the NPS has not increased its domestic equity weight through buying since March-April of last year, when the KOSPI fell below 2,500 on U.S. tariff shocks, though its domestic equity weight has risen at times when rapid rallies lifted the value of its holdings.
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