Nomura: Foreign selling and weaker NPS buying caused KOSPI plunge

The recent significant drop in South Korea's KOSPI index can be primarily attributed to substantial selling pressure from foreign investors, according to Nomura Securities. The brokerage firm's analysis points to a dual impact affecting the market's performance.

In addition to the large-scale divestment by foreign entities, Nomura Securities noted that the weakening buying momentum from the National Pension Service (NPS) has also played a crucial role in exacerbating the market downturn. The NPS is a major institutional investor in South Korea, and its reduced purchasing activity can significantly influence market trends.

This analysis underscores the sensitivity of the KOSPI to the actions of major institutional players. The combined effect of foreign investors offloading shares and the NPS showing less aggressive buying indicates a shift in market sentiment or strategy among key stakeholders. The report does not specify the reasons behind these investment shifts but focuses on their observable impact on the market.