[Edaily Reporter Shin Ha-yeon] The KOSPI is showing weakness, opening down more than 2% in early trading. Foreign investors are increasing downward pressure with net selling exceeding 800 billion won.

According to MP Doctor on the 4th, as of 9:07 a.m. today, the KOSPI is trading at 8,595.53, down 205.96 points (2.34%) from the previous trading day. It opened at 8,623.82, down 2.02% from the previous day, and continues to trade lower.

Overnight, the New York stock market saw all three major indices fall as ceasefire negotiations between the U.S. and Iran stalled and armed conflict between the two sides resumed. On the 3rd (local time), the Dow Jones Industrial Average, which tracks blue-chip stocks on the New York Stock Exchange (NYSE), closed at 50,687.07, down 1.21% from the previous trading day.

The S&P 500 Index, a benchmark for large-cap stocks, closed at 7,553.68, down 0.74%, while the tech-heavy Nasdaq Composite Index closed at 26,853.98, down 0.89%. With this day’s decline, the S&P 500 and the Nasdaq ended their respective nine-day winning streaks.

This is interpreted as a result of investor sentiment being dampened by surging international oil prices and rising Treasury yields amid escalating tensions in the Middle East. On that day, Brent crude futures closed at $97.81 per barrel, up 1.9% from the previous trading day, while West Texas Intermediate (WTI) crude futures rose 2.4% to $96.02 per barrel.

Han Ji-young, an analyst at Kiwoom Securities, stated, “While the ‘Jensen Huang narrative’ may subside following his visit to South Korea on the 5th, the concentration of market attention on semiconductors—the leading sector—is expected to continue, making high volatility inevitable for the time being.” She advised, “At this point, it is appropriate to build a portfolio centered on semiconductors—the leading sector with relatively strong earnings momentum—as well as other key sectors such as securities, retail, and defense, where stock prices have underperformed despite favorable earnings outlooks, and the biotech sector, which is heavily oversold due to a lack of supply and demand.”

In terms of supply and demand, foreign investors are currently the sole net sellers in the stock market, offloading 818.1 billion won worth of shares and driving the index lower. While retail and institutional investors are net buyers of 712.9 billion won and 142.9 billion won, respectively, their efforts are insufficient to stem the index’s decline. Program trading shows a net selling position of 746 billion won, combining both arbitrage and non-arbitrage trades.

Sector performance is mixed. IT services are down by around 6%, while telecommunications and insurance are down by around 4%. Following these, electrical/electronics, manufacturing, entertainment/culture, transportation equipment, components, finance, textiles/apparel, food/beverage/tobacco, and pharmaceuticals are all declining. On the other hand, securities, medical/precision instruments, and electricity/gas are up by around 2%. Chemicals, retail, metals, machinery and equipment, paper and wood, general services, real estate, and transportation and warehousing are also down.

Among the top market cap stocks, #Samsung Electronics is trading at 351,500 won, down 9,000 won (2.50%) from the previous trading day. #SK Hynix is trading at 2,282,000 won, down 78,000 won (3.31%). In addition, #SK Square (-2.38%), #Hyundai Motor (-4.94%), #Samsung Electro-Mechanics (-2.10%), #LG Energy Solution (-2.15%), #Samsung Life Insurance (-11.35%), and #Hyundai Mobis (-5.40%) are also trading lower.

At the same time, the KOSDAQ market is trading at 1,059.02, up 32.99 points (3.22%) from the previous trading day. By investor type, foreign and institutional investors are net buyers of 50 billion won and 51.4 billion won, respectively. Retail investors are the only group showing net selling, at 88.5 billion won.

Most of the top market cap stocks are on the rise. #EcoProBM (2.78%), #Alteogen (1.54%), #EcoPro (4.47%), #Juseong Engineering (13.0%), #Kolon TissueGene (3.24%), and #Samchundang Pharmaceutical (6.13%) are all gaining ground.