Foreign Investors Sell for 9 Straight Days Amid Middle East Tensions, Dragging KOSPI Toward 5,000 [Market Close]

[The Financial News] The KOSPI fell back toward the 5,000 level under sustained selling by foreign investors.
On the 31st, the KOSPI closed at 5,052.46, down 224.84 points, or 4.26%, from the previous session. This marked its fourth consecutive decline since the 26th.
The index opened lower and briefly recovered in early trading to climb above the 5,200 level, but renewed foreign selling pushed it back down toward 5,000.
Foreign investors have been net sellers for nine consecutive sessions since the 19th. On the day, individuals and institutions posted net purchases of 2.4410 trillion won and 1.0245 trillion won, respectively, but foreigners dumped a net 3.8384 trillion won.
Market heavyweights Samsung Electronics and SK hynix plunged 5.16% and 7.56%, respectively. The slide reflected growing concern that prolonged war and resulting instability in raw material supplies could negatively affect semiconductor production.
Other major names were also weak, including LG Energy Solution (-3.78%), Hyundai Motor Company (-5.11%), Samsung Biologics (-1.70%), Hanwha Aerospace (-4.51%), SK Square (-8.53%), Doosan Enerbility (-2.55%), and Kia (-4.16%).
With the exception of food, beverages, and tobacco, most sectors ended lower. In particular, electrical and electronics, medical and precision instruments, construction, manufacturing, metals, paper and lumber, transportation equipment and parts, and financials all recorded declines in the 3–5% range.
Kang Jinhyuk, a researcher at Shinhan Securities, noted, "Overnight, the New York stock market saw weakness in semiconductor stocks centered on Micron Technology, Inc., following a downgrade in notebook and smartphone shipment forecasts and the impact of TurboQuant," adding, "Foreign investors have been dumping KOSPI shares in trillion-won blocks for nine straight sessions."
Han Ji-young, a researcher at KIWOOM Securities, explained, "Even though pressure from rising U.S. interest rates has eased, geopolitical uncertainties such as oil prices and exchange rates remain," and pointed out, "The broad-based weakness in U.S. semiconductor stocks will also be a burden."
Meanwhile, the KOSDAQ closed at 1,052.39, down 54.66 points, or 4.94%, from the previous session.

jisseo@fnnews.com Seo Min-ji Reporter