Kospi Slips to 6,930 as Foreign, Institutional Selling Hits Chip Heavyweights

The Kospi slipped to the 6,930 level in early trading on October 2 as foreign and institutional investors sold in tandem. Large semiconductor stocks, including Samsung Electronics and SK Hynix, also weakened.

As of 9:04 a.m., the Kospi was down 34.71 points, or 0.50%, from the previous session at 6,936.64.

On the main bourse, foreign investors were net sellers of 141.1 billion won, while institutions sold a net 34.4 billion won. Retail investors bought a net 152.4 billion won, absorbing the supply.

Among the market's biggest stocks, Samsung Electronics fell 1.45% to 272,000 won and SK Hynix slipped 0.33% to 1.827 million won. Samsung C&T dropped 2.02%, Samsung Electro-Mechanics lost 1.35% and Hyundai Motor fell 1.15%. KB Financial Group rose 2.35%, while LG Energy Solution added 0.55%.

Although the rise in U.S. Treasury yields eased overnight and the Philadelphia Semiconductor Index gained more than 1%, South Korea's stock market appeared pressured by profit-taking.

Han Ji-young, an analyst at Kiwoom Securities, said easing U.S. rate pressures and gains in semiconductor shares were positive factors. Still, profit-taking could emerge during the session ahead of the U.S. September jobs report and a domestic holiday period.

The Kosdaq rebounded in early trading. At the same time, it was up 4.97 points, or 0.56%, at 899.26.

On the Kosdaq market, institutions were net buyers of 9.5 billion won, while retail and foreign investors were net sellers of 3.8 billion won and 4.6 billion won, respectively. EcoPro rose 2.70%, Jusung Engineering gained 2.28% and EcoPro BM added 0.61%. HPSP fell 3.04% and EO Technics lost 2.66%.