KOSPI starts strong but falls back amid foreign, individual selling

South Korea's benchmark KOSPI index experienced a volatile trading session on Friday, opening with gains before succumbing to selling pressure and turning negative. The index initially surpassed the 6400 mark, reflecting a rebound from a significant drop the previous day. However, this upward momentum proved short-lived.

The decline was largely attributed to a weak performance in semiconductor stocks on Wall Street. Major U.S. memory chip manufacturers like SanDisk and Western Digital saw considerable losses, dampening investor sentiment globally. This led to a reversal in the KOSPI's early gains, with the index falling 92.95 points, or 1.48%, to 6203.43 by late morning.

Trading activity revealed a shift in investor behavior. Foreign and individual investors, who had initially shown buying interest, began selling off their holdings. Conversely, institutional investors stepped in to absorb these sell orders. This dynamic contributed to the mixed market sentiment.

Within the crucial semiconductor sector, major players exhibited contrasting performances. Samsung Electronics managed to maintain its early gains, while SK Hynix reversed its initial upward trend and experienced a widening decline. The KOSPI's performance mirrored that of the KOSDAQ market, which also recovered to the 810-point level early on before falling sharply, currently showing a decline of over 2%.