KOSPI Plunges Nearly 4% on Heavy Net Selling by Foreign and Institutional Investors, Closes at 4,011

The KOSPI plunged nearly 4% to the 4,011 level as both foreign investors and institutions engaged in net selling.

On November 14, the KOSPI closed at 4,011.57, down 159.06 points (3.81%) from the previous trading day.

The KOSPI opened at 4,061.91, down 2.61% from the previous session. In the afternoon, intensified net selling by foreign investors widened the index's decline. Ultimately, the KOSPI failed to rebound and ended the session at the 4,011 level.

Lim Jeongeun, a researcher at KB Securities, explained, "The sharp drop was due to growing concerns about the artificial intelligence (AI) and semiconductor industries, as expectations for an interest rate cut weakened." She added, "Foreign investors recorded a combined net selling of over 3 trillion won in the spot and futures markets."

As of 4:30 p.m., according to integrated investor trading data from KRX and NXT, foreign investors and institutions recorded net sales of 2.8576 trillion won and 1.0044 trillion won, respectively. In contrast, individual investors net bought 3.8455 trillion won.

By sector, electrical and electronics stocks plunged 6.21%, while insurance stocks fell 5.35%. Machinery and equipment, medical and precision, and securities all dropped more than 4%, and electric and gas stocks declined over 3%. On the other hand, textiles and apparel, as well as pharmaceuticals, saw slight gains.

Among large-cap stocks, Samsung Electronics closed at 97,200 won, down 5,600 won (5.45%) from the previous session. SK Hynix fell 8.50%, and Doosan Enerbility declined 5.66%. LG Energy Solution and NAVER both dropped more than 4%. In contrast, HD Hyundai Heavy Industries rose 3.17%.

On the KOSPI, 171 stocks rose, including two stocks-NK and Metalabs-that hit the daily upper limit. A total of 719 stocks fell, with none hitting the lower limit, and 36 stocks remained unchanged.

The KOSDAQ closed at 897.90, down 20.47 points (2.23%) from the previous session.

By investor type, foreign investors and institutions net sold 344 billion won and 23.6 billion won, respectively. In contrast, individual investors net bought 380.5 billion won.

By sector, machinery and equipment fell 5.12%, while non-metallic and electrical and electronics stocks dropped more than 4%. Chemicals and construction also declined over 3%. On the other hand, publishing and media rose 2.21%.

Among large-cap stocks, Alteogen closed at 554,000 won, up 5,000 won (0.91%) from the previous session. ABL Bio rose 6.54%, and both LIG Chem Bio and Kolon TissueGene jumped more than 4%. In contrast, Ecopro BM, Ecopro, and Rainbow Robotics all fell more than 5%.

On the KOSDAQ, 350 stocks rose, including four stocks-Dongil Steel Lux and Sears Technology, among others-that hit the daily upper limit. A total of 1,284 stocks fell, including Curiosis and Micro Contact Solutions, which hit the daily lower limit. Ninety-three stocks remained unchanged.