The KOSPI opened in negative territory on the 2nd, surrendering the 2,000-point psychological level during intraday trading.
As of 9:17 AM, the index was trading at 1,994.02, down 23.32 points (1.16%) from the previous close. The benchmark index commenced the session at 1,995.31, a 22.03-point (1.09%) decline, and has since maintained a bearish trajectory. This marks the first intraday breach of the 2,000 mark in seven months, since January 4 (1,984.53).
In the equities market, foreign investors recorded net sales of 31.8 billion won. Meanwhile, retail and institutional investors posted net purchases of 15.5 billion won and 14.4 billion won, respectively.
Overnight, Wall Street closed lower across the board following the U.S. administration’s announcement of further tariffs on Chinese goods. The Dow Jones Industrial Average shed 1.05%, while the S&P 500 and the Nasdaq Composite fell by 0.90% and 0.79%, respectively.
U.S. President Donald Trump announced via Twitter on August 1 (local time) that a 10% tariff would be levied on the remaining $300 billion worth of Chinese imports effective September 1.
Noh Dong-kil, an analyst at NH Investment & Securities, observed that the rekindling of U.S.-China trade tensions, sparked by the President’s tweet, is exerting significant downward pressure on the domestic market. Additionally, the heightened probability of Japan removing South Korea from its “whitelist” of preferred trading partners is further dampening investor sentiment.
Wednesday, July 17, 2019
10:27 AM
Me: Bro, KOSPI is down 1.23%.
Me: KOSDAQ is down 1.27%.10:29 AM
Me: [[fn Morning Market Update] KOSPI declines as institutions and foreigners join in selling] https://n.news.naver.com/mnews/article/014/000426270910:31 AM
Recipient: Is it time to enter?10:54 AM
Me: Since you asked me to let you know if anything happened—as this is a sign of the looming bear market I mentioned earlier.
Me: It seems acceptable to start scaling in gradually.10:55 AM
Me: Since the entire market has corrected by more than 1%.10:56 AM
Me: While I need to dig deeper into the research, holding cash until today at the earliest, or next Monday at the latest, will likely offer a smoother entry point.10:57 AM
Me: The stocks I recommended at the start of the year have nearly tripled…10:58 AM
Me: You might consider the current phase as a secondary downward rally.
I spent the better part of a month, commencing in late June, advising a close associate that “a substantial market correction appears imminent; it is therefore prudent to liquidate current positions post-haste and reallocate into inverse instruments and sovereign debt," though I remain uncertain as to the eventual disposition of his capital.