KOSPI Closes at 3,853.26, Down 3.79%, Following 2.8 Trillion Won Net Selling by Foreign Investors [fn Closing Market]

[Financial News] The Korea Composite Stock Price Index (KOSPI) ended trading on the 21st at the 3,853 level, down more than 3% from the previous session, due to heavy selling by foreign investors.
On this day, the KOSPI closed at 3,853.26, down 151.59 points (3.79%) from the previous session. The index opened at 3,908.70, down 96.15 points (2.40%), and at one point fell as low as 3,838.46.
In the KOSPI Market, foreign investors sold off 2.8212 trillion won worth of shares. In contrast, individual investors and institutional investors recorded net purchases of 2.2929 trillion won and 495.5 billion won, respectively.
Most sectors ended lower. Electronics and electrical (-6.43%), medical and precision instruments (-5.94%), manufacturing (-4.71%), machinery and equipment (-4.38%), large-cap stocks (-4.06%), and securities (-3.78%) all showed weakness. However, food, beverage & tobacco (0.39%), IT services (0.31%), and telecommunications (0.25%) posted gains.
Most of the top market cap stocks closed lower. Notably, semiconductor stocks such as Samsung Electronics (-5.37%) and SK hynix (-8.23%) saw sharp declines. LG Energy Solution (-3.29%), Hyundai Motor (-1.15%), and HD Hyundai Heavy Industries (-4.63%) also weakened. On the other hand, Kia (0.44%), Celltrion (0.21%), and Naver (1.95%) ended higher.
Despite Nvidia's strong third-quarter results as an artificial intelligence (AI) chipmaker, persistent concerns over an 'AI bubble' are believed to have triggered foreign investor selling. In addition, the reduced likelihood of a U.S. interest rate cut in December also had an impact. With major economic indicators not being released due to the recent Federal government of the United States shutdown, the Federal Open Market Committee (FOMC) is scheduled for December, and the market estimates a 65% probability of a rate freeze.
Joain, a researcher at Samsung Securities, stated, "High market volatility appears inevitable until around the December FOMC," adding, "Since the KOSPI surged more than 30% in September and October, this is considered a short-term price adjustment phase."
On the same day, the Korean Securities Dealers Automated Quotations (KOSDAQ) closed at 863.95, down 27.99 points (3.14%) from the previous session. The index started at 867.45, down 24.49 points (2.75%) from the previous close.
In the KOSDAQ market, individual investors recorded a net purchase of 219.9 billion won, while foreign investors and institutional investors sold 127.2 billion won and 79.1 billion won worth of shares, respectively.

[email protected] Im Sang-hyuk Reporter