The KOSPI index, which flirted with the 6,800 level intraday on the 30th, reversed lower during trading and gave up the 6,600 level by the close. After extending a record high streak for three straight days this week (Apr. 27-29), the rally stalled ahead of the weekend.
The KOSPI index closed at 6,598.87, down 93.03 (1.39%) from the previous trading day. The index had climbed to the 6,750 level intraday, but then reversed lower and surrendered the 6,600 level.
Foreign selling was strong. Foreign investors were net sellers of nearly 500 billion won intraday, then expanded net selling to 1 trillion won before the close. Individuals were net buyers of 1.18 trillion won, and institutions were net buyers of nearly 300 billion won. Among institutions, financial investment, where exchange-traded fund (ETF) flows are tallied, had a 500 billion won buying advantage.
Large-cap stocks were generally weak. Samsung Electronics fell more than 2%, and semiconductor stocks such as SK hynix underperformed overall. Meanwhile, as expectations for artificial intelligence (AI) infrastructure investment continued, power cable and electricity-related stocks were strong. Taihan Cable & Solution and LS rose 9% and 8%, respectively, and Sanil Electric jumped 20%.
The burden of high oil prices due to risks stemming from the Middle East appears to have dampened investor sentiment. After the United States said it would continue a naval blockade until Iran gives up nuclear weapons and international oil prices hit a record high for the first time in four years, foreigners' appetite for risk assets weakened.
The previous day, the Federal Open Market Committee (FOMC) kept the benchmark interest rate at 3.5% to 3.75%, but the statement emphasized inflation and Middle East risks, adding to market uncertainty. Former Federal Reserve Chair Jerome Powell said the likelihood of additional rate hikes is low, but the market remains divided over a pause versus further increases.
Lee Kyung-min, an analyst at Daishin Securities, said, "As the market digested a hawkish FOMC and the inflation burden from high oil prices, the KOSPI showed a weak trend."
Strong results from big tech the day before provided early momentum for the market, but the impact was limited thereafter. Four big tech companies—Microsoft (MS), Alphabet (Google), Meta and Amazon—all posted results that beat market expectations on revenue and earnings per share (EPS).
The KOSDAQ index also fell 27.91 (2.29%) to close at 1,192.35. The index, which had been moving around the 1,200 level last week, gave up 1,200 on the day as foreigners and institutions were net sellers of 211 billion won and 304.8 billion won, respectively.
While most stocks declined, Seondo Electric, which resumed trading after four years, and SOCAR, which moved to establish an Autonomous Driving subsidiary with Krafton, closed at the upper limit (the top of the daily price band).