[Closing Market] KOSPI Plummets 3.99% Amid Heavy Foreign Selling
On Sept. 2, the second trading day of September, the domestic stock market closed with a steep decline after taking a direct hit from adverse external factors, including the reignition of military tensions in the Middle East and a simultaneous surge in international oil prices and interest rates. As
On September 2, South Korea's KOSPI stock market experienced a sharp decline, falling 3.99% to close at 6,562.72 points. The market's downfall was attributed to external factors, including tensions in the Middle East, rising oil prices, and increased interest rates. Investors worldwide reacted negatively to these developments, causing a wave of selling across international markets.
Foreign and institutional investors were the main drivers of the sharp stock market drop. They collectively sold 1.9093 trillion won (approximately $1.393 billion) in the KOSPI market, primarily targeting semiconductor and large-cap IT stocks. Institutional investors added another 2.433 trillion won in net sales, contributing to a total loss of 4.35 trillion won to the market. Individual investors, acting as the "lonely buyer," failed to prevent the massive selling pressure.
The KOSDAQ market also suffered, with the index closing at 803.98 points, down 17.27 points (2.10%) from the previous session. The decline was primarily driven by foreign and institutional investors, who sold 232 billion won. While foreign investors net-sold 61.7 billion won and individual investors net-bought 172.7 billion won, the overall market trend remained downward.
Semiconductor stocks, a significant part of the market's capitalization, saw sharp declines. Samsung Electronics and SK hynix both experienced losses, with Samsung's stock dropping from 261,000 won to 254,000 won, and SK hynix falling from 1,693,000 won to 1,640,000 won. Other large-cap stocks in finance, automobiles, and secondary batteries also struggled, unable to maintain early trading gains.
The foreign exchange market was also impacted by the global economic situation. The strengthening of the US dollar and rising oil prices, caused by Middle East instability, affected the won/dollar exchange rate, which fluctuated within 1,360 won to 1,370 won. Foreign fund outflows from the domestic stock market contributed to the rate's appreciation, adding volatility to the situation.
Experts believe that geopolitical risks and raw material price trends will continue to influence the domestic stock market. If geopolitical instability persists, inflation could rise, potentially hindering central banks' interest rate cut plans. Market experts advised investors to maintain a cautious approach, holding onto cash and focusing on stocks with clear performance momentum, as the market remained highly volatile.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.