[Edaily Reporter Shin Ha-yeon] The KOSPI, which fell as much as 2% during the session to dip below the 8,500 mark, closed at the 8,600 level. Foreign investors sold a net total of nearly 7 trillion won in a single day, increasing downward pressure on the index.

According to MP Doctor on the 4th, the KOSPI closed at 8,639.41, down 162.08 points (1.84%) from the previous trading day. The index opened at 8,623.82, down 2.02% from the previous close, and showed volatility, falling as low as 8,577.30 at one point during the session.

By investor type, foreign investors were the sole net sellers in the stock market, offloading 6.988 trillion won worth of shares, which drove the index lower. In contrast, retail and institutional investors were net buyers, purchasing 5.0115 trillion won and 1.8144 trillion won worth of shares, respectively.

This marks the 19th consecutive trading day of net selling by foreign investors since the 7th of last month. It is the longest streak since the 17 consecutive trading days of net selling from February 10 to March 4, 2009, when the aftermath of the global financial crisis persisted.

This appears to have affected investor sentiment in the domestic market as U.S. economic indicators showed strength, pushing up Treasury yields, and the three major U.S. stock indices fell in unison following the resumption of armed conflict between the U.S. and Iran.

Han Ji-young, an analyst at Kiwoom Securities, noted, “The U.S. stock market also appears to be showing signs of short-term fatigue as it has been on a continuous rally since last April,” adding, “Amid this, negative domestic and international news flows over the past two trading days have caused market participants to react more sensitively to negative factors than to positive ones.”

The rising won-dollar exchange rate is also fueling selling by foreign investors. The won-dollar exchange rate closed at 1,529.7 won, up 13.3 won. During the session, it briefly surpassed 1,530 won for the first time since March 31.

Among the top-cap stocks on the KOSPI, Samsung Electronics closed at 351,500 won, down 9,000 won (2.50%) from the previous trading day. #SK Hynix closed at 2,298,000 won, down 62,000 won (2.63%) from the previous session.

Other than these, #Hyundai Motor (-3.98%), #Samsung Electro-Mechanics (-5.35%), #LG Energy Solution (-4.63%), #Samsung Life Insurance (-8.75%), #HD Hyundai Heavy Industries (-3.27%), #Hyundai Mobis (-1.45%), #Kia (-2.76%), #Doosan Enerbility (-0.80%), and #Samsung Biologics (-1.24%) all showed weakness.

By sector, the market was mixed. Telecommunications fell by around 7%, and IT services dropped by around 5%. Following these, the electrical/electronics, insurance, manufacturing, transportation equipment/parts, food/beverage/tobacco, real estate, transportation/warehousing, pharmaceutical, general services, textiles/apparel, and non-metallic sectors also closed lower. In contrast, the retail sector closed up by around 7%, while medical/precision instruments, securities, chemicals, electricity/gas, machinery/equipment, construction, entertainment/culture, and metals sectors showed strength.

KOSPI trading volume totaled 431.77 million shares, with a trading value of 46.2314 trillion won. Including two stocks that hit the daily price limit, 447 stocks rose, while 446 fell. Thirty-one stocks traded flat, and there were no stocks that hit the daily price limit down.

The KOSDAQ index closed at 1,049.73, up 23.70 points (2.31%) from the previous trading day, showing a trend opposite to that of the KOSPI. It rose as high as 1,065.90 during the session. By investor type, retail investors and foreign investors were net sellers of 163.6 billion won and 30.2 billion won, respectively, while institutions were the sole net buyers, purchasing 207.0 billion won.

On the KOSDAQ, #Ecopro (0.94%), #Juseong Engineering (27.22%), #Kolon TissueGene (1.39%), #Rino Industrial (7.33%), #Samchundang Pharmaceutical (2.48%), #HLB (0.77%), #Wonik IPS (29.93%) showed strength, while #EcoPro BM (-0.30%), #Alteogen (-2.94%), #Rainbow Robotics (-6.42%), and #Peptron (-1.48%) were weak.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, noted, “The three major U.S. indices fell amid Middle East tensions, despite the market digesting solid economic indicators,” adding, “Large-cap semiconductor and IT stocks were generally weak, while the KOSDAQ showed a technical rebound from the lower end of its trend line, driven by expectations for stimulus measures and strength in materials, parts, and equipment sectors.”

Meanwhile, overnight on the New York Stock Exchange, the three major indices fell across the board as military clashes resumed between the U.S. and Iran amid a stalemate in ceasefire negotiations. On the 3rd (local time), the Dow Jones Industrial Average, which tracks blue-chip stocks on the 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. 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.