December 2 Closing Market Summary: KOSPI Approaches 4,000p and Market Imbalance
On Tuesday, December 2, the KOSPI closed at 3,994 points, once again approaching the 4,000-point breakout. After concerns about breaking below 3,900p yesterday, the index surged 74 points today and continued to rise even in after-hours trading. Foreign investors net bought 1.2 trillion KRW in total, but their buying was concentrated in specific sectors and stocks, raising concerns about market imbalance.
Key Highlights of Today’s Market
First, the KOSPI closed at 3,994p, increasing the likelihood of breaking 4,000p tomorrow. Second, although foreign investors injected massive net buying, most of the funds flowed into large caps such as Samsung Electronics and SK Hynix. Third, due to this concentration, the KOSDAQ was relatively weak (foreign net selling of 140 billion KRW), and sector divergence intensified.
Index & Chart Perspective — Outlook Ahead
With the KOSPI closing near its intraday highs, another attempt to break above 4,000p looks valid in the short term. Although some indicators show a death cross (short- and mid-term moving averages crossing downward), sustained volume and foreign buying could shift the structure back into a golden cross. However, given next week’s FMC expiration and other event risks, investors should prepare for possible sudden volatility.
Detailed Market Flow Analysis
Foreign investors net bought 1.2 trillion KRW today, with approximately 800 billion KRW concentrated in Samsung Electronics and SK Hynix. Institutions maintained weak participation overall, financial investment firms showed limited buying power, and pension funds displayed no major movements.
This trading pattern results in an “index-led rise,” where the index climbs but actual buying breadth remains narrow. In other words, the rising index may not translate into widespread gains across all stocks. Investors should keep an eye on the market’s “center of gravity” — whether liquidity remains concentrated in large caps or becomes more broadly distributed.
Sector & Stock Performance
Major gainers included Samsung Electronics (+2.5%), SK Hynix (+3.7%), Kia (+4.0%), and KB Financial (+4.5%). In contrast, large-cap stocks in secondary batteries and biotech — such as LG Energy Solution and Samsung Biologics — were relatively weak. Defense stocks declined, while robotics-related stocks surged late in the session by approximately +4.4%.
In the KOSDAQ, some biotech names such as Alteogen, Peptone, and Kolon TissueGene fell, while mid-to-small caps like TechIn and Dongyang Express hit the upper price limit. The sharp movements in small caps confirm that this market is currently “selective” rather than broadly rising.
Institutional & Foreign Trading Patterns
Institutions showed buying interest in traditional large-cap sectors such as semiconductors (Samsung, Hynix), autos (Hyundai, Kia), and financials (Shinhan, KB Financial). Foreign investors concentrated about 700 billion KRW into Samsung Electronics and SK Hynix and also bought selectively into robotics and electricity-related stocks. Conversely, they sold positions in biotech, nuclear, shipbuilding, and some materials/components names.
The critical point is that foreign investor buying is not “broadly lifting the market,” but rather “propping up the index” by buying a limited number of large caps. Therefore, retail investors should avoid blindly following the index and instead consider valuation and individual stock risk.
Investment Strategy & Action Plan
1) Position Check: Although the KOSPI is likely to break 4,000p, liquidity remains concentrated in certain sectors. Review whether your portfolio is overly weighted toward large caps.
2) Partial Buy/Sell Strategy: To manage short-term volatility, stagger entry and exit points to reduce risk.
3) Sector & Stock Selection: Monitor whether momentum continues in sectors receiving inflows — semiconductors, autos, robotics, and financials. Approach biotech based on earnings and catalysts.
4) Event Monitoring: With next week’s FMC expiration, key macro data, and corporate earnings, sudden swings are possible. Maintaining some cash allocation is recommended.
Risk Checklist
• If foreign buying loses momentum, a sharp short-term correction is possible
• Expiration-related volatility from options and futures
• External shocks linked to global events (rates, policy, FX)
Overall Assessment
Overall market sentiment in early December is positive. The KOSPI approaching 4,000p provides psychological and technical momentum, and many portfolios likely shifted back into profit territory. However, liquidity concentration in specific sectors and large caps remains a structural risk that can trigger corrections at any time. Investors should enjoy the rising market while maintaining strict risk management rules (stop-loss, partial trading, cash ratio).
Recommended Actions by Investor Type:
• Short-term traders: Seek opportunities in volatile conditions but reduce positions around major events
• Mid- to long-term investors: Focus on diversification and fundamentally strong names within sectors
