Foreign Investors Are Selling Heavily Again... KOSPI Falls Back to the 7,330 Range [fn Morning Market Report]

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[Financial News] Foreign investors have dumped nearly 200 billion won worth of KOSPI stocks within just one hour of the market open. Individual investors are absorbing the selling, but even defending the 7,300 level appears increasingly difficult.
At 9:55 a.m. on the 19th, KOSPI was trading at 7,339.20, down 176.84 points, or 2.35%, from the previous session. The index opened at 7,425.66, down 1.20% from the previous close, and widened its losses to fall into the 7,330 range.
In the Korea Exchange Main Board, foreign investors posted net sales of 188.46 billion won in less than an hour after the open. Individual investors stepped in with 179.26 billion won in purchases, but their efforts were not enough. Institutions showed a net buying position of 35.3 billion won.
By sector, machinery and equipment (-4.72%), distribution (-3.96%), and electrical and electronics (-2.61%) were all weak, while only food and beverages and tobacco (0.11%) and electricity and gas (3.62%) were in positive territory.
Among the largest-cap stocks, the two semiconductor heavyweights, Samsung Electronics (-2.67%) and SK hynix (-2.17%), were both under pressure.
The decline is seen as a result of profit-taking in technology stocks in New York Stock Exchange (NYSE) trading overnight, after uncertainty over ceasefire talks between the United States and Iran pushed up the United States 10-Year Treasury bond yield and oil prices. Semiconductor names such as Micron (-5.95%) and SanDisk Corporation (-5.30%) also weakened on the NYSE.
All stocks ranked from No. 1 to No. 8 by market capitalization, including major semiconductor names, were in the red. They included SK Square (-4.03%), Hyundai Motor Company (-7.24%), LG Energy Solution (-1.23%), Samsung Electro-Mechanics (-2.96%), and Doosan Enerbility (-3.84%).
Hanwha Aerospace rose 8.48% on its own. The gain is attributed to stronger defense-related shares as ceasefire talks between the United States and Iran remained deadlocked.
Although profit-taking pressure is building around leading stocks such as semiconductors, experts say investors should not rush to sell.
Han Ji-young, a researcher at KIWOOM Securities Co., Ltd., said, "Major semiconductor stocks in Korea and abroad, including those in the United States, are in a phase where profit-taking pressure is emerging on the back of their recent rapid gains. At the same time, events that could limit downside, such as the resumption of U.S.-Iran talks later this week and NVIDIA Corporation's earnings release, are also ahead. In that context, investors should avoid joining the selling of leading stocks."
She added, "For now, intraday volatility may appear frequently as the market digests the pace of recent gains, but this is only part of a slowdown and is unlikely to threaten the market's existing uptrend."
At the same time, KOSDAQ was trading at 1,093.32, down 17.77 points, or 1.60%, from the previous session. The index opened at 1,111.36, up 0.02% from the previous close, before extending its losses.
In the Korea Securities Dealers Automated Quotations (KOSDAQ) market, foreign investors were net sellers of 166.8 billion won. Individuals and institutions posted net buying positions of 155.1 billion won and 53.9 billion won, respectively.
nodelay@fnnews.com Park Ji-yeon Reporter