KOSPI plunges and loses 5,500 level; sell-side sidecar triggered [FN Morning Market Briefing]

[Financial News] The Korea Composite Stock Price Index (KOSPI) tumbled for a second straight day, hit by geopolitical tensions in the Middle East. A sell-side sidecar trading curb was triggered for the second day in a row, and major blue chips all moved lower.
At 9:45 a.m. on the 4th, the KOSPI was trading at 5,489.65, down 302.26 points (5.22%) from the previous session.
The index opened at 5,592.59, down 199.32 points (3.44%) from the previous close, and at one point during the session fell to as low as 5,548.97.
As the KOSPI plunged in early trading, sell program orders were temporarily halted at 9:06 a.m. under the sidecar mechanism. The sidecar was activated for the second consecutive day.
In the KOSPI Market, retail investors are net sellers of 610 billion won. Foreign investors, who had shown net buying right after the open, have turned to net selling and offloaded 98 billion won. Institutions alone are net buyers, with a net purchase of 658.9 billion won.
By sector, transport and storage (-7.99%), retail (-6.0%), and machinery and equipment (-5.84%) are posting steep declines.
Among large-cap stocks by market capitalization, major blue chips are all lower, including Samsung Electronics (-3.28%), SK Hynix (-1.97%), Hyundai Motor Company (-4.54%), and LG Energy Solution (-2.8%).
Overnight, the U.S. stock market plunged early in the session on heightened risks of a U.S.-Iran war and news that private equity firm Blackstone had partially suspended redemptions from its private credit funds. However, the market later pared losses and closed with a smaller decline as bargain hunters stepped in and reports emerged that the United States was considering military protection for ships transiting the Strait of Hormuz.
Han Ji-young, a researcher at Kiwoom Securities, said, "The KOSPI is expected to face downward pressure today due to the ongoing geopolitical instability in the Middle East and a sharp drop in U.S. semiconductor stocks such as Micron Technology," adding, "However, some of the negative factors were already priced in during yesterday's 7% plunge in the KOSPI, and if bargain-hunting demand emerges on perceptions of an excessive decline, additional downside pressure is likely to be limited."
At the same time, the KOSDAQ Index was trading at 1,079.65, down 58.05 points (5.10%) from the previous session. The index opened at 1,112.08, down 2.25% from the previous close, and at one point during the session fell as much as 6.12% to 1,068.05.
In the KOSDAQ market, retail investors have sold 294.9 billion won, while foreign investors and institutions are net buyers of 14.9 billion won and 281 billion won, respectively.

nodelay@fnnews.com Park Ji-yeon Reporter