[Edaily Reporter Kim Hyung-il ] Although SamsungElectronics(005930)reported preliminary third-quarter earnings that exceeded market expectations, the domestic stock market plummeted. This was driven by increased selling pressure from foreign and institutional investors, as supply-and-demand pressures—including options expiration, exchange-traded fund (ETF) rebalancing, and the upcoming holiday market closure—converged. The KOSPI extended its intraday losses to close below the 6,600 mark, while the KOSDAQ partially recovered its losses, buoyed by strength in secondary battery and semiconductor materials, parts, and equipment stocks.

According to MP Doctor on the 8th, the KOSPI closed at 6,625.93, down 177.97 points (2.62%) from the previous trading day. The index opened 0.07% higher at 6,808.68 early in the session but soon turned lower. The downward trend continued, and the market closed around the 6,600 level. In terms of supply and demand, retail investors made net purchases of 3.5975 trillion won, helping to support the index. In contrast, foreign and institutional investors made net sales of 2.4407 trillion won and 1.9335 trillion won, respectively. The combined net sales by foreign and institutional investors alone totaled 4.3742 trillion won.

The KOSPI saw a particularly pronounced decline among large-cap stocks. Large-caps fell 2.74%, while mid-caps dropped 1.43% and small-caps fell 0.52%. By sector, the financial sector (-4.11%) saw the sharpest decline, followed by transportation equipment and parts (-3.94%), pharmaceuticals (-3.69%), and information technology (IT) services (-3.54%).

Most of the top market-cap stocks also traded lower. SamsungElectronics fell 2.42%, and SK hynix(000660)dropped 2.44%. SamsungElectroMechanics(009150)(-3.62%), HyundaiMotor(005380)(-3.42%), KB Financial Group(105560)(-3.38%), SAMSUNG BIOLOGICS(207940)(-4.54%), and Samsung Life Insurance(032830)(-4.27%) also fell. SKSQUARE(402340)plummeted 8.06%. In contrast, LG Energy Solution(373220)rose 2.56%.

SamsungElectronics announced that its preliminary third-quarter operating profit rose 782.5% year-over-year to 107.4 trillion won, while revenue increased 126.6% to 195 trillion won. Although operating profit slightly exceeded the market consensus of 106 trillion won, the stock price was pressured by profit-taking.

The KOSDAQ also closed lower. The KOSDAQ index ended the day at 892.27, down 6.16 points (0.69%) from the previous trading day. It opened at 898.19, down 0.03%, but partially recovered its losses toward the end of the session. On the KOSDAQ, retail investors and foreign investors were net buyers of 48.8 billion won and 55.9 billion won, respectively, while institutions were net sellers of 96.3 billion won. A total of 618 stocks rose, 88 remained unchanged, and 1,031 fell.

By sector, weakness was particularly pronounced in pharmaceuticals (-3.47%), general services (-3.22%), and construction (-2.92%). In contrast, semiconductor materials, parts, and equipment stocks performed relatively strongly. JUSUNG ENGINEERING Co.,Ltd.(036930)rose 8.08%, and LEENO Industrial Inc(058470)(3.17%), WONIK IPS Co.,Ltd.(240810)(1.98%), SIMMTECH Co., Ltd.(222800)(1.41%), and EO Technics Co., Ltd.(039030)(1.16%) also gained. ECOPRO BM CO., LTD.(247540)also rose 3.45%. The KOSDAQ blue-chip stock Alteogen Inc.(196170)fell 6.23%, and Rainbow Robotics(277810)also dropped 4.03%. ECOPRO CO., LTD(086520)closed flat.

The day’s stock market weakness was also influenced by concerns over U.S.-driven interest rates and oil prices. The yield on the 10-year U.S. Treasury note rose to 5.36% during the session, hitting its highest level since 2002, while the price of Brent crude oil also surpassed $102 per barrel. As inflation concerns resurfaced, the three major U.S. stock indices all fell.

The minutes from the September Federal Open Market Committee (FOMC) meeting revealed that a majority of members believed one additional interest rate hike this year would be appropriate. However, the market impact was limited as the committee reaffirmed its data-dependent policy stance.

Lim Jeong-eun, an analyst at KB Securities, said, “Supply-demand pressures intensified as today’s options expiration and ETF rebalancing coincided with a market holiday the following day,” adding, “With foreign and institutional investors recording combined net sales of around 4.3 trillion won, the KOSPI closed below the 6,700 level.”

She continued, “Rotational buying was seen in the secondary battery sector driven by LG Energy Solution’s strong third-quarter earnings and expectations of a return to profitability after excluding the U.S. American Manufacturing Production Credit (AMPC),” and He added, “Next week, ahead of earnings announcements from U.S. financial stocks and the options expiration date on the 16th, the market will continue to gauge its direction by monitoring key economic indicators such as the Consumer Price Index (CPI) on the 14th, the Producer Price Index (PPI) on the 15th, and retail sales figures.”