The KOSPI index briefly surpassed the 8000 mark for the first time in history but then plummeted by over 5% due to a wave of profit-taking, falling below 7500 to around 7400.
According to the Korea Exchange, as of 2:46 PM, the KOSPI was trading at 7456.55, down 524.86 points (-6.58%) from the previous trading day.
The index opened at 7951.75, down 29.66 points (-0.37%) from the previous day, but managed to rise above 8000 early in the session. However, a rapid influx of profit-taking, primarily from foreign investors, quickly expanded the decline.
At approximately 1:28 PM, a sell-side circuit breaker was triggered due to sudden fluctuations in the KOSPI 200 futures index, halting program sell orders for five minutes. This was the first activation of a sell-side circuit breaker in the KOSPI market since April 2.
Lee Kyung-min, a researcher at Daishin Securities, noted, "Although the KOSPI initially broke the 8000 mark for the first time, it turned bearish and retreated toward the 7500 level. The recent concentration on large semiconductor stocks has intensified, leading to a rapid rise followed by profit-taking pressure due to a normalization of this concentration and rising bond yields."
Han Ji-young, a researcher at Kiwoom Securities, commented, "The surge in the dollar/won exchange rate back to around 1500 won has led to increased foreign net selling. There is also a burden from the rapid 20.9% increase in the KOSPI since May 1 and the aftereffects of extreme concentration in a few sectors."
In the main stock market, individual investors have made a net purchase of 5.4633 trillion won to support the index. In contrast, foreign and institutional investors have focused on profit-taking, selling a net 4.7857 trillion won and 779.2 billion won, respectively.
Most of the top market capitalization stocks are showing declines. Samsung Electronics is down 8.61%, SK Hynix is down 7.92%, SK Square is down 6.49%, Hyundai Motor is down 2.11%, LG Energy Solution is down 5.43%, Samsung Electro-Mechanics is down 1.76%, Doosan Enerbility is down 5.72%, HD Hyundai Heavy Industries is down 5.37%, and Samsung Biologics is down 1.86%.
The KOSDAQ index has also turned downward. At the same time, the KOSDAQ was recorded at 1138.07, down 53.02 points (-4.45%) from the previous trading day. The index initially rose to 1197.23 but quickly reversed as investor sentiment weakened.
In the KOSDAQ market, foreign investors have made a net purchase of 131.8 billion won, while individuals and institutions have sold a net 64.1 billion won and 17.3 billion won, respectively.
The top market capitalization stocks in the KOSDAQ are also experiencing declines. Alteogen is down 3.77%, EcoPro BM is down 7.08%, EcoPro is down 8.01%, Rainbow Robotics is down 3.33%, Kolon TissueGene is down 2.10%, Samchundang Pharm is down 4.20%, Rino Technology is down 9.19%, Rigakem Bio is down 2.45%, HLB is down 2.82%, and ABL Bio is down 5.18%.
* This article has been translated by AI.
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