[Edaily Reporter Kim Kyung-eun ] The KOSPI, returning from the Chuseok holiday, fell below the 7,000 mark. This was driven by heavy selling by foreign investors, as concerns persisted over the sharp rise in U.S. long-term Treasury yields and high international oil prices during the holiday period. Major semiconductor stocks SamsungElectronics and SK hynix both fell by more than 5%, leading the index lower.

According to MP Doctor on the 28th, the KOSPI closed at 6,889.74, down 191.18 points (2.70%) from the previous trading day. The index opened at 7,057.86, down 23.06 points (0.33%) from the previous close, trading in a slightly flat range, but subsequently continued its downward trend and closed at its intraday low. This marks the first time the index has closed below the 7,000 level in four trading days, since the 18th.

By investor type, foreign investors sold off 3.2263 trillion won worth of stocks, dragging the index down. Institutions also recorded net sales of 1.0174 trillion won. Retail investors were the only group to make net purchases, buying 2.6054 trillion won worth of stocks.

In particular, a simultaneous decline in large-cap semiconductor stocks weighed on the index. SamsungElectronics(005930)closed at 270,000 won, down 15,500 won (5.43%) from the previous trading day. This was the last day to purchase shares to receive SamsungElectronics’ third-quarter dividend. However, it is believed that the contraction in investor sentiment caused by rising U.S. long-term Treasury yields had a greater impact on stock prices than the appeal of the dividend.

Although AI-related stocks rebounded on the New York Stock Exchange during the holiday period, the domestic stock market on this day was more heavily weighed down by rising U.S. long-term interest rates and international oil prices. The yield on the 10-year U.S. Treasury note surpassed 5.22% during trading on the 25th, hitting a 19-year high. International oil prices also fell briefly following Iran’s proposal to reopen the Strait of Hormuz but remain at elevated levels. Concerns over inflationary pressure from high oil prices and the possibility of further U.S. interest rate hikes are seen as weighing on investor sentiment toward growth stocks.

SK hynix(000660)The stock closed at 1,768,000 won, down 94,000 won (5.05%) from the previous trading day. Reports that its subsidiary, Solidigm, is planning an initial public offering (IPO) in the U.S. as early as next year also acted as a negative factor. This comes amid growing concerns over the controversy surrounding dual listings resulting from the IPO and the potential erosion of value for minority shareholders. As a result, SKSQUARE(402340) also closed at 1.1 million won, down 90,000 won (7.56%).

The securities industry is also keeping a close eye on stock price movements on the 29th, which is SamsungElectronics’ ex-dividend date. This is because there is a possibility of further declines as selling pressure surges after the last day to purchase shares eligible for this dividend has passed. However, the prevailing view is that interest rates, oil prices, and foreign investor sentiment will determine the stock’s direction rather than a mechanical price adjustment due to the dividend. In particular, Micron’s earnings report on the 30th (local time) and SamsungElectronics’ preliminary earnings report early next month will be key factors in determining whether the market rebounds.

Lee Sang-yeon, an analyst at ShinyoungSecurities, said, “We are placing greater weight on the possibility of a KOSPI rebound, centered on large-cap semiconductor stocks, from this week through early October,” adding, “Whether the rebound continues depends on whether earnings expectations lead to actual upward revisions in profit forecasts and whether interest rates and oil prices do not rise further.”

On this day, the KOSDAQ closed at 846.58, up 2.10 points (0.25%) from the previous session, ending the day in slightly positive territory. Retail investors and foreign investors were net buyers of 21.1 billion won and 46.8 billion won, respectively, while institutional investors were net sellers of 74.2 billion won.