Even Samsung Electronics and SK hynix Could Not Withstand the Selling Barrage... Foreign and Institutional Investors Sold KRW 4.8 Trillion

[Financial News] The KOSPI Composite Index plunged nearly 4% as government bond yields in major countries and international oil prices rose together. As risk aversion intensified despite share buybacks by Samsung Electronics and SK hynix, the KOSPI Composite Index fell below the 6,600 mark, while the KOSDAQ also dropped more than 2%.

On the 2nd, the KOSPI Composite Index closed at 6,562.72, down 273.08 points, or 3.99%, from the previous trading day. On the main board, individual investors made net purchases of KRW 3.1236 trillion, but foreign investors and institutions made net sales of KRW 2.4480 trillion and KRW 2.3555 trillion, respectively, pulling the index lower.

The sharp rise in international oil prices and higher government bond yields in major countries were cited as factors that weakened investor sentiment. Overnight, the United States launched additional airstrikes against Iran, intensifying the military confrontation between the two countries and sending international oil prices sharply higher. October-delivery West Texas Intermediate crude oil (WTI) futures rose above $90 per barrel, while November-delivery Brent crude oil futures climbed to around $95.

Rising oil prices heightened inflation concerns, pushing government bond yields in major countries higher as well. The yield on 10-year U.S. Treasury notes rose as high as 4.788% during the session. Japanese government bond yields also exceeded 3%, rapidly dampening investor sentiment across the market.

Analysts said macroeconomic pressures had outweighed the stabilizing effect of investor flows. Among large-cap stocks, semiconductor shares posted particularly steep declines. Samsung Electronics and SK hynix both closed down in the 4% range. Most of the top stocks by market capitalization on the main board also fell.

The KOSDAQ fell below 800 during the session before narrowing its losses late in the day. The index closed at 803.98, down 17.27 points, or 2.10%, from the previous day. Although it slipped below 800 early in the session, buying flowed into materials, parts, and equipment stocks as well as biotech shares, allowing trading to end above the 800 mark.

In the KOSDAQ market, individual and foreign investors made net purchases of KRW 171.9 billion and KRW 83.1 billion, respectively. Institutions made net sales of KRW 251.7 billion.

[email protected] Han Seung-gon Reporter