The KOSPI fell more than 2% to drop back to the 6,600 range on the 8th, weighed down despite bellwether Samsung Electronics posting record-breaking earnings.

According to the Korea Exchange, the KOSPI closed down 177.97 points (2.62%) at 6,625.93 compared to the previous trading session.

The index started the day up 4.78 points (0.07%) at 6,808.68, but quickly turned downward and widened its losses into the afternoon.

While retail investors net-purchased KRW 2.9061 trillion, foreign and institutional investors net-sold KRW 1.9921 trillion and KRW 1.6714 trillion, respectively, dragging the index down.

Foreigners also recorded a selling advantage of KRW 1.247 trillion in the KOSPI 200 futures market.

As of 3:30 PM, the won-dollar exchange rate in the Seoul foreign exchange market closed at KRW 1,338.5, down KRW 1.9 from the previous session.

The KOSPI declined as profit-taking (sell-on-news) emerged following Samsung Electronics' better-than-expected preliminary third-quarter earnings report.

Samsung Electronics announced before the regular market opening that its preliminary consolidated operating profit for the third quarter of this year reached KRW 107.4 trillion.

This figure exceeded the market consensus of KRW 105.7533 trillion compiled by Yonhap Infomax by 1.6%.

This marks the first time a South Korean company has ever surpassed KRW 100 trillion in quarterly operating profit, a milestone unprecedented even among global big tech firms such as Apple and NVIDIA.

However, its stock price tumbled by more than 2% on a closing basis, as investor sentiment weakened due to sell-on-news sentiment following the realization of the event.

Additionally, the rebound in international oil prices and U.S. Treasury yields during trading hours appeared to add downward pressure to the index.

Brent crude and West Texas Intermediate (WTI) futures prices both broke back above $103 and $90 per barrel, respectively, while the yield on the 10-year U.S. Treasury bonds surged well past 5.3%.

Lee Kyung-min, an analyst at Daishin Securities, noted, "Although Samsung Electronics' operating profit of KRW 107 trillion exceeded market expectations, a sell-off occurred as profit-taking emerged. Amid pressures from interest rates and oil prices, the stock market, which sought a turnaround through Samsung's earnings announcement, saw investor sentiment contract due to the drop in Samsung's stock price."

Among top market capitalization stocks, Samsung Electronics (-2.42%), SK Hynix (-2.44%), and SK Square (-8.06%) declined, whereas LG Energy Solution (2.56%), Samsung SDI (1.25%), and SK Innovation (0.81%) advanced.

By industry sector, only textiles and apparel (0.09%) and real estate (0.02%) posted gains, while most sectors such as finance (-4.11%), transportation equipment and parts (-3.94%), and pharmaceuticals (-3.69%) retreated.

In the KOSPI market, 252 stocks advanced, 625 declined, and 40 remained unchanged.

The tech-heavy KOSDAQ index finished down 6.16 points (0.69%) at 892.27.

The index started down 0.24 points (0.03%) at 898.19, oscillated between gains and losses, and ultimately closed lower.

In the KOSDAQ market, retail and foreign investors net-purchased KRW 50.3 billion and KRW 64.1 billion, respectively, while institutional investors net-sold KRW 106.5 billion.

Among leading KOSDAQ stocks, Alteogen (-6.23%), Rainbow Robotics (-4.03%), and HLB (-0.54%) fell, while EcoPro BM (3.45%), Jusung Engineering (8.08%), and Leeno Industrial (3.17%) rose.

The KOSDAQ market saw 618 advancers, 1,031 decliners, and 88 unchanged issues.

Trading values for the main KOSPI and KOSDAQ markets were recorded at KRW 23.203 trillion and KRW 7.65 trillion, respectively.

Trading values for Nextrade, an alternative trading system, totaled KRW 9.2067 trillion across its pre-market and main market sessions.

(Photo: Yonhap News)