KOSPI Falls Below 4,000 Again as Foreign and Institutional Investors Sell [fn Morning Market Briefing]

[Financial News] Due to net selling by foreign and institutional investors, the Korea Composite Stock Price Index (KOSPI) fell below the 4,000 mark again after just one day.
As of 11 a.m. on the 4th, the KOSPI was trading at 3,992.29, down 44.01 points (1.09%) from the previous session. The index opened at 4,018.91, a decrease of 0.43% from the previous close, and has continued to widen its losses during the session.
In the KOSPI Market, individual investors alone net purchased 968.7 billion KRW, while foreign investors and institutional investors net sold 722.5 billion KRW and 284.5 billion KRW, respectively.
By sector, transportation and storage (up 0.98%) and IT services (up 0.25%) showed strength, while medical and precision instruments (down 2.58%), retail (down 1.98%), and construction (down 1.63%) were weak.
Among large-cap stocks, most shares such as Samsung Electronics (down 0.86%), SK hynix (down 3.08%), and LG Energy Solution (down 1.32%) declined. Hyundai Motor (up 4.88%) and Doosan Enerbility (up 0.64%) were among the few gainers.
Overnight, the U.S. stock market closed higher as expectations for a Fed rate cut grew following a slowdown in the employment and price indices within the ISM Services Index and weaker private employment data. However, during the session, investment sentiment in big tech was dampened by news that Microsoft had revised down its AI product sales forecast.
Sunghoon Lee, a researcher at KIWOOM Securities, stated, "Recently, the domestic stock market is entering a phase where sensitivity to new government policies may increase toward the end of the year and the beginning of the next. It is advisable to maintain positions in leading stocks with strong earnings momentum, such as semiconductors, while seeking excess returns through short-term trading focused on stocks benefiting from government policies."
At the same time, the Korea Securities Dealers Automated Quotations (KOSDAQ) was trading at 926.79, down 5.22 points (0.56%) from the previous session. The index opened at 934.01, up 0.21% from the previous close.
In the KOSDAQ market, individual and institutional investors net bought 38.6 billion KRW and 72.2 billion KRW, respectively, while only foreign investors showed net selling of 31.3 billion KRW.

nodelay@fnnews.com Park Ji-yeon Reporter