KOSPI Plummets on Heavy Foreign Selling... Drops 2.37% [fn Closing Market Report]

[Financial News] The Korea Composite Stock Price Index (KOSPI) plunged as heavy selling by foreign investors drove the market down. Profit-taking in major semiconductor stocks and a rising exchange rate also contributed to the decline.
According to the Korea Exchange (KRX) on the 4th, the KOSPI closed at 4,121.74, down 100.13 points (-2.37%) from the previous session. The index opened at 4,219.24, down 2.63 points (0.06%) from the previous day, but losses deepened as large-cap stocks such as Samsung Electronics and SK hynix tumbled.
In the KRX, individual investors bought 3.2106 trillion won, while foreign investors and institutions sold 2.5103 trillion won and 736.1 billion won, respectively.
By sector, food & beverage/tobacco (up 1.80%), paper/wood (up 1.22%), and pharmaceuticals (up 1.16%) showed strength, while securities (down 4.87%), electrical/electronics (down 4.33%), and transportation equipment/parts (down 3.61%) were weak.
Among large-cap stocks, KB Financial Group (up 2.37%), Shinhan Financial Group (up 2.43%), and Celltrion (up 0.97%) gained, while HD Hyundai Heavy Industries (down 6.59%), SK hynix (down 5.00%), and Samsung Electronics (down 4.86%) declined.
The decline in major semiconductor stocks such as Samsung Electronics and SK hynix, along with a rise in the US Dollar–South Korean Won exchange rate, appeared to increase downward pressure on the KOSPI. As of 3:30 p.m., the exchange rate stood at 1,437.9 won per dollar, up 9.1 won from the previous day in the Seoul foreign exchange market.
On the same day, the Korean Securities Dealers Automated Quotations (KOSDAQ) closed at 926.57, up 12.02 points (1.31%) from the previous session. Foreign investors and institutions were net buyers of 225.2 billion won and 167.7 billion won, respectively, while individuals were net sellers of 370.8 billion won.
Jungeun Lim, a researcher at KB Securities, explained, "After the KOSPI surpassed the 4,200 mark the previous day, driven by strong performances from Samsung Electronics and SK hynix, profit-taking by foreign investors in large semiconductor stocks led to the decline. In contrast, biotechnology, rechargeable battery, and Materials, Parts, and Equipment Industry stocks, as well as KOSDAQ and small- to mid-cap shares, showed relative strength, resulting in a balancing trend."


koreanbae@fnnews.com Bae Han-geul Reporter