The KOSPI index has recorded its lowest close since November 13, 2023, ending at 2,416.93, down by 65.64 points, or 2.64%. This marks a significant downturn as the index, which nearly reached 2,900 in July, continues to slide, having recently broken below the 2,500-point mark.
Several factors are contributing to the ongoing decline. The strengthening U.S. dollar and rising interest rates on U.S. government bonds are pushing foreign investors to pull back from the South Korean market. This foreign exodus adds pressure on the domestic bourse, with foreigners and institutions being net sellers, offloading 662.2 billion won and 15.9 billion won, respectively. Meanwhile, individual investors are stepping in to buy, acquiring stocks worth 645.2 billion won, but their efforts have not been enough to reverse the overall downward trend.
Concerns are growing over the limited recovery signs in the stock market and the potential increased burden on the domestic market if the current supply-demand situation does not improve.
