08/04 Korea Market Morning Briefing — KOSPI Plunges, KOSDAQ Rebounds… Dual Net Selling by Foreigners and Institutions
KOSPI returned half of the previous session's surge, plunging -5.12% to close at 6,257.45, while KOSDAQ diverged with a +2.44% gain. The strong rebound driven by 7.24T KRW in foreign net buying on July 31 reversed in a single day into combined selling by foreigners (-2.82T KRW) and institutions (-1.95T KRW). Retail investors alone bought 4.65T KRW on the dip. Ahead of key US labor market indicators this week, data-dependent positioning takes priority over directional bets.
Market Overview: KOSPI Gives Back Rebound Gains while KOSDAQ Diverges Higher
KOSPI entered the second day following the July 31 surge (+18.0%), returning approximately 53% of the previous day's rebound to close at 6,257.45 (-5.12%). Compared to the July 29 low of 5,663.24, it maintains a +10.5% rebound. KOSDAQ gained +2.44%, diverging from KOSPI. Trading volume reached approximately 26.3 trillion KRW for KOSPI and 5.5 trillion KRW for KOSDAQ.
| Index | 08/03 Close | Change | % Change |
|---|---|---|---|
| KOSPI | 6,257.45 | -338.00 | -5.12% |
| KOSDAQ | 737.35 | +17.59 | +2.44% |
Investor Flows: Foreigners and Institutions Shift to Dual Net Selling, Retail Buys Dip
Foreign investors (-2.82T KRW) and institutional investors (-1.95T KRW) shifted to combined net selling, reversing the strong inflows seen on July 31 (+7.24T KRW and +1.15T KRW respectively). Retail investors consistently bought the dip with +4.65T KRW in net buying. In KOSDAQ, institutions extended net purchases to 3 consecutive sessions (+0.17T KRW), while foreigners turned slight net sellers (-0.21T KRW).
| Date | Foreigners (T KRW) | Institutions (T KRW) | Retail (T KRW) |
|---|---|---|---|
| 07/28 | -4.50 | +0.18 | +4.32 |
| 07/29 | -1.25 | +3.18 | -1.97 |
| 07/30 | +1.33 | +0.08 | -1.43 |
| 07/31 | +7.24 | +1.15 | -8.28 |
| 08/03 | -2.82 | -1.95 | +4.65 |
Futures, Foreign Exchange & Interest Rates
As of July 31, K200 futures closed at 1,041.1 (basis -5.71), with foreigners net buying +92 contracts and institutions net buying +1,194 contracts. USD/KRW dropped for 5 consecutive sessions to 1,433.6 KRW (-7.5 KRW), easing foreign exchange loss risks. Bank of Korea Base Rate remains at 2.75%. The BBB- corporate bond spread stands at 651.6 bp, signaling persistent refinancing pressure for lower-rated issuers.
| Rate / Bond / FX Metric (08/03) | Value / Rate | Spread / Notes |
|---|---|---|
| USD/KRW FX Rate | 1,433.6 KRW | -7.5 KRW (5-Day KRW Rally) |
| Bank of Korea Base Rate | 2.75% | - |
| 3-Year Treasury (KTB 3Y) | 3.742% | - |
| 10-Year Treasury (KTB 10Y) | 4.264% | 52.2 bp (10Y-3Y) |
| 3-Year Corporate (AA-) | 4.462% | 72.0 bp (AA- Spread) |
| 3-Year Corporate (BBB-) | 10.258% | 651.6 bp (BBB- Spread) |
Key DART Corporate Filings (08/03)
| Category | Company | Details |
|---|---|---|
| Merger | Metalabs (090370) | Decision on Company Merger |
| Treasury Stock Acquisition | Inzisoft (100030) | Decision on Treasury Stock Acquisition |
| Treasury Stock Acquisition | CAS (016920) | Decision on Treasury Stock Acquisition |
| Treasury Stock Acquisition | Hyundai Purenet (126560) | Decision on Treasury Stock Acquisition |
| Treasury Stock Disposition | Daekyo (019680) | Decision on Treasury Stock Disposition |
| Capital Increase (Correction) | Hanul Semiconductor (320000) | Correction to Capital Increase Decision |
| Capital Increase (Correction) | HLB Pharmaceutical (047920) | Correction to Capital Increase Decision |
| Capital Increase | Bonne (226340) | Decision on Capital Increase |
| Capital Increase (Correction) | Penetrium Bio (187660) | Correction to Capital Increase Decision |
| Contingent Capital Securities | Woori Financial Group (316140) | Correction to Capital Securities Issuance |
Weekly Economic Calendar
This week is heavy on US labor market data. In particular, US Non-Farm Payrolls (NFP) on Aug 7 and US CPI on Aug 12 are crucial indicators for gauging Federal Reserve monetary policy direction.
| Date | Event / Indicator |
|---|---|
| 08/04 (Tue) | US JOLTs Job Openings |
| 08/05 (Wed) | US ADP Employment, ISM Services PMI |
| 08/06 (Thu) | US Initial Jobless Claims |
| 08/07 (Fri) | US Non-Farm Payrolls (NFP), Average Hourly Earnings, Unemployment Rate |
| 08/12 (Wed) | US Consumer Price Index (CPI) |
| 08/13 (Thu) | US Producer Price Index (PPI) |
Market Outlook and Tactical Scenarios
- KRX Index & Flow Data (get_kr_index_series, get_kr_market_flows)
- KRX & US Futures Signals (get_market_signals)
- BOK ECOS Rates & FX (get_kr_yield_curve, get_ecos_stat)
- DART Filings (search_dart_filings)
- Toss Economic Calendar (get_toss_economic_calendar)
- Credit Ratings History (get_recent_credit_rating_changes)