"How long has it been since it was flat?" KOSPI falls 0.8% to the 5,600 level [fn Morning Market Report]

[Financial News] KOSPI was trading in a flat range in early session on the 30th, after falling more than 0.8%. The drop appears to have drawn in bargain hunters after the index plunged sharply, with circuit breakers triggered for two straight days recently.
As of 9:40 a.m. that day, KOSPI was down 49.01 points, or 0.87%, from the previous session at 5,614.23. It opened 18.53 points, or 0.33%, higher at 5,681.77, then reversed course.
On the Korea Exchange Main Board, institutions and foreign investors were net buyers of 303.7 billion won and 219.5 billion won, respectively. Retail investors, meanwhile, were net sellers of 541.4 billion won.
Among the market-cap leaders, Samsung Electronics (-0.96%), SK hynix (-6%), SK Square (-5.53%), Samsung Electro-Mechanics (-4.47%), and Hyundai Motor Company (-0.57%) were lower. LG Energy Solution (5.16%), Samsung Biologics (1.89%), KB Financial Group (5.37%), and Samsung C&T Corporation (3.68%) were higher.
By sector, food and tobacco (3.81%), metals (3.50%), transportation and warehousing (3.41%), chemicals (3.30%), pharmaceuticals (3.10%), and transportation equipment and parts (2.75%) were rising. Electricity and electronics (-3.44%), medical and precision instruments (-2.28%), and manufacturing (-2.01%) were declining.
After the Federal Reserve System decided to keep its benchmark rate unchanged on the 29th local time following the Federal Open Market Committee (FOMC) meeting, hawkish remarks by Federal Reserve Chair Kevin Warsh weighed on sentiment. In a press conference after the meeting, Warsh said, "If inflation remains elevated throughout the forecast period, rates could still be part of the solution."
However, with both KOSPI and KOSDAQ seeing sharp declines and circuit breakers triggered for two consecutive days on the 28th and 29th, investors who viewed the selloff as excessive have been stepping in to buy on dips.
Han Ji-young, a researcher at Kiwoom Securities, said, "The FOMC, geopolitical uncertainty, and weakness in U.S. semiconductor stocks are expected to weigh on the market," but added, "Given the recent string of selloffs and the resulting oversold conditions, the domestic market is likely to attempt a rebound."
At the same time, KOSDAQ was trading at 657.38, down 5.30 points, or 0.80%, from the previous session. It opened at 654.72, down 7.96 points, or 1.20%, from the prior trading day.
On KOSDAQ, institutions and foreign investors were buying 51.2 billion won and 41.7 billion won worth of shares, respectively. Retail investors were selling 93.9 billion won worth.

[email protected] Lim Sang-hyuk Reporter