KOSPI Recovers in the Afternoon, Hovers Around 4,000 as Individuals and Foreign Investors Engage in Tug-of-War [fn Afternoon Market Report]

[Financial News] After falling over 6% in the morning, the Korea Composite Stock Price Index (KOSPI) has shown signs of recovery and is now fluctuating around the 4,000 mark. While foreign investors have recorded net sales of approximately 2.5 trillion won, individual investors are supporting the index by making net purchases of about 2.26 trillion won.
According to the Korea Exchange (KRX), as of 2:00 p.m. on the 11th, the KOSPI was trading at 3,978.28, down 143.46 points (3.48%) from the previous day. The index opened 1.61% lower and dropped as far as 3,867.81 during the morning session.
In the main stock market, individuals and institutions have made net purchases of 2.2263 trillion won and 273.2 billion won, respectively, while foreign investors have sold a net 2.4926 trillion won.
By sector, all industries except insurance (up 0.52%) and telecommunications (up 0.26%) are showing declines. Machinery and equipment (-6.26%), transportation equipment and parts (-5.15%), and chemicals (-4.03%) are among the weakest performers.
Among the top 10 stocks by market capitalization, most are declining. Large semiconductor stocks such as Samsung Electronics (-6.01%) and SK hynix (-6.14%) are down sharply, along with Doosan Enerbility (-10.06%), Hanwha Aerospace (-7.13%), and HD Hyundai Heavy Industries (-6.70%).
At the same time, the Korean Securities Dealers Automated Quotations (KOSDAQ) was trading at 896.85, down 29.72 points (3.21%) from the previous day. Individual investors have purchased 735.5 billion won, while foreigners and institutions have sold 680.8 billion won and 27.8 billion won, respectively.
Meanwhile, both the KOSPI and KOSDAQ experienced sharp declines in the morning, triggering a sidecar (temporary suspension of program sell orders). According to the KRX, at around 9:46 a.m., a five-minute sidecar was triggered due to volatility in the KOSPI 200 Index Futures. For the KOSDAQ, a five-minute program sell suspension was enacted at 10:26 a.m. after the KOSDAQ 150 Futures plunged 6.23% from the previous day.
Lee Jae-won, a researcher at Shinhan Securities, explained, "The KOSPI saw a wave of profit-taking as concerns over a USA-driven AI bubble emerged. The index fell more than 5% during the session as industrial stocks, including large-cap semiconductor shares that had recently led the rally to record highs, extended their losses."

koreanbae@fnnews.com Bae Han-geul Reporter