Foreigners Sold More, and the KOSPI Slipped Another Notch Below 5,500

Right now the KOSPI sits at 5,469.28, down 1.46%, and the KOSDAQ at 731.77, down 2.65%. Since the 10:40 brief the KOSPI has slid another 0.38%p and the KOSDAQ another 0.08%p. The morning's slide never stopped, and the KOSPI sank one more notch, with 5,500 now behind it.

Foreigners sold more, institutions soaked it up

Foreign net selling on the KOSPI grew by 219.3B won since the last brief. Institutions took in 267.3B won and the index still wouldn't hold. On the KOSDAQ even institutions are selling, 64.7B won of it, which is why the drop is deeper at 2.65%. One small crack: foreigners there moved 8.3B won toward net buying versus the last brief.

Of the headlines, the bank lending survey fits the tape. Around noon the Bank of Korea survey landed saying banks will tighten corporate and consumer loans in Q4 and credit risk will grow. I read that as one more excuse for foreigners to sell. The won at 1,325.99 per dollar (+0.03%) and the dollar index at 101.60 (-0.21%) tell me FX isn't what lit the fuse. Last US session (10/23 close) was soft, S&P 500 -0.52% and Nasdaq -0.21%, with copper/minerals and gold miners weak, and today's market picked up that thread. Cybersecurity and cloud strength went against it, but that's a finished session's record.

My disclosed holdings stand at Kia -6.3%, HD Korea Shipbuilding -11.7%, Shinhan Financial -7.6% and Poongsan -20.5%. Those are accumulated paper P&L, not today's moves, and I'm just quietly watching them.

3 hours 20 minutes to the close. First I watch whether the KOSPI makes a run at reclaiming 5,500 and whether foreign net selling of 489.7B won keeps swelling. I also want to see if foreign net buying on the KOSDAQ carries on, and if the institutions' 267.3B won of buying holds to the bell.