KOSPI Falls Below 4,000 Amid US-Driven Downturn... Plunges Over 3% [fn Closing Market]

[The Financial News] The KOSPI surrendered the 4,000 mark after seven trading days, hit by a cold snap originating from the United States of America (USA).
On the 18th, the KOSPI ended trading at 3,953.62, down 135.63 points (3.32%) from the previous session. This is the first time since the 7th that the KOSPI has closed below 4,000.
The index started at 4,044.47, down 44.78 points (1.10%) from the previous day, and briefly rebounded to 4,072.41 in early trading. However, it soon lost ground, deepening its losses and eventually falling below the 4,000 level.
In the KOSPI Market, institutions net sold 676.8 billion won and foreign investors net sold 550.2 billion won, dragging the index lower. In contrast, individual investors were net buyers of 1.2414 trillion won.
Most of the top market cap stocks weakened. Samsung Electronics fell 2.78%, SK hynix dropped 5.45%, LG Energy Solution lost 4.21%, Samsung Electronics Preferred Shares declined 4.00%, and Hyundai Motor slid 2.39%.
All sectors flashed red, with securities (-4.77%), machinery and equipment (-4.53%), electrical and electronics (-4.16%), construction (-4.04%), manufacturing (-3.54%), and IT services (-3.47%) posting significant declines.
Overnight, the New York Stock Exchange (NYSE) saw tech stocks fall amid concerns over an artificial intelligence (AI) bubble, dampening investor sentiment in the domestic market as well. Worries about a slower pace of US interest rate cuts also weighed on the market.
Lee Jae-won, a researcher at Shinhan Securities, stated, “There were no upward catalysts due to nervousness ahead of Nvidia Corporation’s earnings and hawkish comments from Federal Reserve System (Fed) officials. Until Nvidia’s results and the employment report are released on the 20th, caution toward tech stocks is expected to persist.”
Meanwhile, the Korean Securities Dealers Automated Quotations (KOSDAQ) closed at 878.70, down 23.97 points (2.66%) from the previous day.

[email protected] Seo Min-ji Reporter