[Edaily Reporter Kim Hyung-il ] The KOSPI plunged nearly 4% as risk-averse sentiment spread amid rising international oil prices and government bond yields. The KOSDAQ also fell more than 2%, dropping below the 800-point mark. In particular, selling pressure from foreign and institutional investors concentrated on large-cap stocks, causing the KOSPI large-cap index to drop 4.12% and further widening the index’s decline.

According to MP Doctor on the 2nd, the KOSPI closed at 6,562.72, down 273.08 points (3.99%) from the previous trading day. The KOSDAQ closed at 803.98, down 17.27 points (2.1%). On the KOSPI, 139 stocks rose, 37 remained unchanged, and 735 fell, with decliners overwhelmingly dominating; on the KOSDAQ, 359 stocks rose, 76 remained unchanged, and 1,298 fell, with decliners also prevailing.

The KOSPI opened sharply lower early in the session and briefly narrowed its losses, but the decline widened again in the afternoon as selling pressure from foreign and institutional investors intensified. In particular, selling pressure concentrated on large-cap stocks, pushing the KOSPI below the 6,600 level, with large-caps posting steeper declines than mid- and small-cap stocks.

By investor type, retail investors were net buyers of 3.1902 trillion won on the KOSPI, while foreign and institutional investors were net sellers of 2.4527 trillion won and 2.4193 trillion won, respectively. “Other corporations,” which have recently been propping up the KOSPI, were net buyers of 1.6651 trillion won. On the KOSDAQ, retail investors and foreign investors made net purchases of 172.8 billion won and 82.3 billion won, respectively, while institutions made net sales of 251.9 billion won.

Among the top market-cap stocks, SamsungElectronics(005930)fell 4.02%, and SK hynix(000660)fell 4.73%. SKSQUARE(402340)(-7.97%), LG Energy Solution(373220)(-5.31%), HyundaiMotor(005380)(-5.62%), and SAMSUNG C&T CORPORATION(028260)(-4.48%) also fell sharply. Large-cap stocks fell 4.12%, a steeper decline than that of mid-cap (-2.92%) and small-cap (-1.51%) stocks.

By sector, transportation equipment and parts fell 5.34%, while electrical and electronics (-4.34%), machinery and equipment (-4.32%), manufacturing (-4.19%), and distribution (-4.00%) also saw sharp declines of around 4%.

On the KOSDAQ, the weakness in secondary battery stocks was particularly pronounced, with ECOPRO CO., LTD(086520)falling 5.96% and ECOPRO BM CO., LTD.(247540)dropping 7.06%. In contrast, some semiconductor materials and components stocks held up relatively well, with JUSUNG ENGINEERING Co.,Ltd.(036930)rising 0.40% and EO Technics Co., Ltd.(039030)gaining 2.03%. Alteogen Inc.(196170)rose as much as 9% during the session on news of a licensing agreement for its Hybrozyme platform technology with Swiss firm Novartis, but closed down 0.83% as profit-taking set in.

The KOSDAQ market also saw weakness across most sectors. The financial sector fell 4.35%, and the chemicals (-3.17%), transportation equipment and parts (-3.15%), and pharmaceuticals (-2.85%) sectors all declined in turn. However, gains in some semiconductor materials, parts, and equipment stocks limited the index’s further decline.

Lim Jeong-eun, an analyst at KB Securities, noted, “Amid persistent geopolitical risks, the U.S. 10-year Treasury yield exceeded 4.8% and West Texas Intermediate (WTI) crude oil re-surpassed $90, continuing the pressure from high interest rates and high oil prices.” She added, “Risk-averse sentiment also intensified in the domestic stock market, causing both the KOSPI and KOSDAQ to open lower with a gap-down.”

She continued, “On the KOSPI, the decline was driven by a correction concentrated in large-cap stocks, while on the KOSDAQ, a partial rebound in the semiconductor materials, parts, and equipment sector supported the index from falling further.” She also noted, “Foreign and institutional investors recorded net selling for the fourth consecutive trading day, marking the largest volume since the 25th of last month and the 3rd of this month.”

Researcher Lim noted that even with the strong earnings report from Dell Technologies released early this morning, the positive impact on investor sentiment in the domestic semiconductor sector was limited. He also predicted that Broadcom’s earnings announcement scheduled for tomorrow could serve as a turning point.