[마켓뷰] Emerging countries’ funds withdraw from rising US interest rates…KOSPI fell 2.8%

Input 2021.02.26 16:12 | Revision 2021.02.26 18:36

Foreigners and institutions net selling vs. individual net buying ‘3 trillion won’ tug of war

On the 26th, institutions and foreign investors net sold stocks for more than 3 trillion won, and the KOSPI index fell by more than 2%.

On this day, the KOSPI index recorded 3010.27, down 2.88% (89.42 points) from the previous day. The index fell more than 2% from the beginning of the market, increasing the decline, and from 1:30 pm, it fell below the 3000 line. Since then, the index rebounded at 3:3 and recovered to the 3000 line.

The day before, the US Treasury bond rate fell and the US stock market plunged. In anticipation of a normalization of the economy, 10-year US Treasury bonds recorded 1.61% intraday and 0.8% 5-year bonds, returning to the level before the outbreak of the novel coronavirus infection (Corona 19). As the attractiveness of stock investment to bonds declined, the three major indexes of the New York Stock Market fell 1 to 3%.

Funds also leaked from emerging markets due to the sentiment of preference for safe assets. In addition to Korea, the Japanese and Chinese stock markets plummeted. The Nikkei 225 index fell 3.99% from the previous day at 3:15 pm. As of 2:43 pm (local time), China’s Shanghai Composite Index fell 2.01% and the Hong Kong Hang Seng Index fell 3.18%.

Looking at each investor, the trend of selling spots and futures by foreigners was remarkable in the domestic market. Foreigners sold 2,813 trillion won in spot and 7406 billion won of KOSPI 200 futures.

By selling the KOSPI 200 futures by foreigners, the institution net sold the spots of 1.322 trillion won instead of a net purchase of 1.517 trillion won. When futures prices were undervalued, they started an arbitrage trade of buying futures and selling spots. Arbitrage trading is a trading technique that reduces risk and generates profits by buying undervalued spots or futures and selling overvalued futures or spots.

In the end, foreigners and institutional stock sales were defended by individual investors net buying 3,7666 trillion won. The size of individual net purchases on this day was the third largest ever this year, following January 26 (4,617 trillion won) and January 11 (4,579 trillion won). Large-scale purchases of individual investors defended the 3,000 line of the index on the day.

As foreigners and institutions mainly owned by large-cap stocks poured out for sale, the top stocks in market capitalization fell at once. Samsung Electronics (005930)Fell 3.28%, SK Hynix 4.71%, NAVER 2.09%, LG Chem 6.63%, and Hyundai Motors 3.27%.

Lee Kyung-min, a researcher at Daishin Securities, said, “The KOSPI index is expected to fluctuate for the time being due to the situation where the index changes a lot according to the change in the US Treasury bond rate,” he said. Said.

On this day, the KOSDAQ index recorded 913.93, down 2.38% (22.28 points) from the previous day. Celltrion Healthcare fell 3.90%, Celltrion Pharmaceuticals 4.83%, and Kakao Games ## 3.74%. Meanwhile, the won exchange rate against the dollar ended at 1123.5 won, up 1.31% (14.5 won) from the previous day due to the opening of foreign stock markets.