The Kospi extended its intraday losses Tuesday, sliding to the 8,100 range before recovering to the 8,300 level — still more than 1 percent below the previous session's close.
The Kosdaq, which marked its 30th anniversary Tuesday, bucked the broader downtrend and posted gains against the previous session.
As of 3:27 p.m. Tuesday, the Kospi was down 1.81 percent at 8,323.2. The index opened up 115.02 points, or 1.36 percent, at 8,591.50 and briefly touched the 8,600 level before trimming gains and turning negative.
Overnight gains on Wall Street, led by technology stocks, had lifted the Kospi at the open, but heavy foreign selling later pushed the index into negative territory.
Markets are on alert over the resumption of rebalancing by the National Pension Service, whose temporary suspension expired at the end of June. Institutional investors, however, remained net buyers Tuesday.
Analysts expect the impact of the pension fund's rebalancing on the stock market to be limited. Han Ji-young, a researcher at Kiwoom Securities, said the National Pension Service's rebalancing effect in the second half of the year "will not be as large as feared."
Samsung Electronics fell more than 5 percent from the previous session, while SK hynix also dropped more than 3 percent.
The Kosdaq opened up 7.91 points, or 0.86 percent, at 924.09, briefly dipped into negative territory, then reversed course and climbed as high as 955.45. The index ultimately closed up 1.44 percent on the day. Madup, which made its market debut on the Kosdaq on Tuesday, finished up 26 percent.
dlcw@heraldcorp.com
