'Strong Start, Weak Finish': KOSPI Falls for Third Straight Day as Foreign and Institutional Investors Sell Together [fn Market Closing Report]

[Financial News] The KOSPI Composite Index closed lower for the third consecutive day due to concerns over soaring U.S. Treasury yields.
On the 30th, the KOSPI Composite Index closed at 6,838.04, down 32.77 points (0.48%) from the previous trading day. The KOSPI Composite Index started higher but turned lower during the session and failed to recover.
Foreign investors and institutions dragged the index down as they net sold 2.0534 trillion won and 775.2 billion won, respectively. Individual investors showed a net buying advantage of 1.1777 trillion won.
While SK hynix (0.62%), SK Square (1.88%), and Hanwha Solutions Corporation (4.21%) rose, Samsung Electronics Co., Ltd. (-1.47%), Samsung Electro-Mechanics (-0.98%), LG Innotek (-3.59%), and Hyundai Motor Company (-1.43%) closed lower.
By sector, machinery and equipment, chemicals, metals, construction, and transportation and warehousing rose, while insurance, finance, entertainment and culture, food and beverages and tobacco, telecommunications, securities, and electricity and gas fell.
It is interpreted that caution has spread ahead of key economic indicators and Micron Technology, Inc.'s earnings announcement amid concerns over surging U.S. Treasury yields.
"The stock market is reacting sensitively to rising interest rates," said Han Ji-young, a researcher at KIWOOM Securities Co., Ltd. "Although the market consensus is to prepare for the 10-year yield to reach 5.5%, the fact that the pace of interest rate increases is faster than expected is leading to downward pressure on stock prices."
"It is worth noting that there are events on the horizon that could curb the pace of interest rate hikes, such as Personal Consumption Expenditures (PCE) and nonfarm employment," she added. "It is also appropriate to keep open the possibility of offsetting the discount rate burden resulting from rising interest rates through the third-quarter earnings season starting next month, including Micron Technology, Inc.'s earnings early tomorrow morning."
Meanwhile, KOSDAQ (Korea Securities Dealers Automated Quotations) closed at 855.91, up 6.11 points (0.72%) from the previous session.

[email protected] Seo Min-ji Reporter