The KOSPI closed lower as profit-taking centered on Samsung Electronics and SK hynix hit the market. In contrast, the KOSDAQ rose more than 2% for the first time in a while. As stocks that had surged pulled back, a rotation into neglected names emerged.
On the 4th, the KOSPI closed at 8,639.41, down 1.84% (162.08 points) from the previous session. After opening at 8,623.82, down 177.67 points (2.02%) from the previous session, the KOSPI at one point fell below the 8,600 level intraday, but the decline narrowed as retail money flowed in.
In the main board, foreign selling was heavy. Foreign investors were net sellers of 7.8335 trillion won, while individuals and institutions were net buyers of 5.9556 trillion won and 1.6568 trillion won, respectively. Foreign net selling has continued for 19 trading days.
Lee Kyung-min, a researcher at Daishin Securities, said, "The KOSPI weakened as profit-taking emerged on overheating pressure after the recent cumulative rise." However, sector rotation unfolded, narrowing the losses.
With Jensen Huang, CEO of Nvidia, scheduled to visit Korea on the 5th, profit-taking hit Hyundai Motor, LG Electronics, and NAVER, which had risen on the "Jensen Huang effect." Profit-taking also took place in Samsung Electronics and SK hynix, which have led the main board, and both closed down more than 2%.
By contrast, financials and department stores rose. KB Financial, Shinhan Financial Group, Korea Investment Holdings, and Samsung Securities all finished higher. Expectations for stronger domestic consumption and higher foreign sales lifted Shinsegae and Hyundai Department Store to double-digit gains.
As sectors that had driven the domestic market's rally fell, concentration eased. On the main board that day, 447 stocks rose and 446 fell.
The KOSDAQ index finished higher for the first time in a while. The KOSDAQ closed at 1,049.73, up 2.31% (23.70 points) from the previous day.
Institutions led the KOSDAQ market. While foreigners and individuals were net sellers of 173.5 billion won and 15.4 billion won, respectively, institutions alone were net buyers of 207 billion won.
Kang Jin-hyuk, senior researcher at Shinhan Investment & Securities, analyzed, "A technical rebound occurred at the lower end of the trend line on expectations for KOSDAQ support measures, including an emergency meeting by the financial authorities scheduled for the day, and on the strength in parts, materials, and equipment."