KOSPI avoids a ‘Black Friday’ crash as retail investors defend the 5,000 level [fn Closing Market]

[Financial News] Despite heavy net selling of more than 3 trillion won by foreign investors, the Korea Composite Stock Price Index (KOSPI) managed to hold above the 5,000-point mark.
According to the Korea Exchange (KRX) on the 6th, the KOSPI closed at 5,089.14, down 74.43 points (1.44%) from the previous session. The index opened at 5,013.15, down 150.42 points (2.91%), and at one point fell to as low as 4,899.30 during trading, but later pared some of its losses.
In the main stock market, foreign investors dumped 3.3226 trillion won worth of shares, while individual investors and institutions bought a net 2.1747 trillion won and 959.7 billion won, respectively.
All industry sectors finished lower. The steepest declines were in telecoms (-4.75%), retail (-3.77%), securities (-3.08%), transport equipment and parts (-3.07%), IT services (-2.38%), metals (-2.36%), textiles and apparel (-1.90%), utilities such as electricity and gas (-1.89%), and entertainment and culture (-1.88%).
Among large-cap stocks by market capitalization, most ended weaker except for KB Financial Group (up 7.03%), Celltrion (up 1.15%), and Shinhan Financial Group (up 2.97%). Samsung Electronics (-0.44%), SK hynix (-0.36%), Hyundai Motor (-4.30%), LG Energy Solution (-2.53%), Samsung Biologics (-1.88%), SK Square (-3.75%), and Hanwha Aerospace (-3.75%) all closed lower.
The domestic stock market was hit hard by weakness in U.S. equities, but bargain hunting in semiconductor stocks helped the KOSPI defend the 5,000 level.
Brokerages noted that, since there are no fundamental problems with Korean companies themselves, share prices are likely to recover before long.
Lee Jae-won, an analyst at Shinhan Investment & Securities, said, “Despite strong earnings across U.S. big tech, this year’s Capital Expenditures (CapEx) guidance came in above expectations, raising concerns about future profitability.” He added, “However, there are no issues with the fundamentals of Korean companies. The expansion of big tech CapEx is actually favorable for Korean semiconductor makers.”
The KOSDAQ Index closed at 1,080.77, down 27.64 points (2.49%) from the previous session. It started the day at 1,077.08, down 31.33 points (2.83%) from the prior close.
On the KOSDAQ market, individual investors and foreign investors were net buyers of 148.3 billion won and 65.9 billion won, respectively, while institutions recorded net selling of 165.5 billion won.

yimsh0214@fnnews.com Reporter Lim Sang-hyuk Reporter