The KOSPI closed lower for a second straight session as foreign investors unloaded nearly 3 trillion won worth of shares. Samsung Electronics (005930) rebounded despite trading without its dividend entitlement after plunging more than 5% the previous day, while retail and institutional investors absorbed the foreign selling, leaving the index at the 6,870 level.
The KOSPI ended at 6,870.81 on the 29th, down 18.93 points, or 0.27%, from the previous session, according to the Korea Exchange. The index opened 45.33 points, or 0.66%, lower at 6,844.41 and briefly turned positive in the morning before widening its losses in the afternoon. Buying interest emerged late in the session, recovering much of the decline.
Foreign investors sold a net 2.9030 trillion won on the main board. The selling followed net sales of more than 3 trillion won the previous day, marking two consecutive sessions of heavy outflows. Retail investors bought a net 1.1432 trillion won, while institutions purchased a net 121.1 billion won.
Large-cap stocks were mixed. The two major chipmakers diverged, with Samsung Electronics (005930) rising 0.93% and SK hynix (000660) falling 0.17%, while SK Square (402340) gained 1.64% and Samsung Electro-Mechanics (009150) added 1.93%. Decliners included LG Energy Solution (373220), down 3.16%, Samsung Life Insurance (032830), down 1.86%, Hyundai Motor (005380), down 1.27%, Samsung Biologics (207940), down 1.07%, KB Financial Group (105560), down 0.40%, and Samsung C&T (028260), down 0.14%.
Sentiment was pressured after the U.S. 10-year Treasury yield surged to 5.24% overnight and international oil prices rose on stalled negotiations between the United States and Iran. Weakness in U.S. technology shares added to the drag. Apart from Nvidia, which gained 1.68% after announcing a record $150 billion share buyback plan, Micron fell 2.61%, SanDisk 3.65%, AMD 3.61%, Intel 5.67% and Qualcomm 7.17%.
Samsung Electronics managed to close higher despite the technology selloff and its third-quarter ex-dividend date. The 29th marked the day the company's quarterly dividend entitlement expired. Investors who bought Samsung Electronics shares through the previous session qualified for the dividend ahead of the record date set for the 30th. Ex-dividend dates typically bring added selling pressure from the loss of dividend rights and the unwinding of arbitrage positions, but bargain hunting after the previous day's sharp drop lifted the stock.
"Volatility stemming from the Middle East and caution over high interest rates remain in the market," said Lim Jung-eun, an analyst at KB Securities. "Investors will be able to gauge whether the market stabilizes as they digest key events including the U.S. personal consumption expenditures price index for August, Micron's earnings and employment data."
The KOSDAQ, meanwhile, extended its winning streak to a third session. The index opened at 843.87, down 2.71 points or 0.32%, but finished at 849.80, up 3.22 points or 0.38%. Retail investors bought a net 148.6 billion won and institutions a net 5.2 billion won, while foreign investors were the sole net sellers at 129.1 billion won.
