South Korea's stock market fell sharply on June 5, driven by a decline in U.S. semiconductor stocks and foreign selling. The KOSPI dropped over 5%, while the KOSDAQ fell below the 1000 mark for the first time in three months, sliding into the 900s.
According to the Korea Exchange, the KOSPI closed at 8,160.59, down 478.82 points (-5.54%) from the previous trading day. The index opened at 8,323.20, down 316.21 points (-3.66%), and further widened its losses. A sell-side circuit breaker was activated at 9:08:25 AM due to a sharp decline in the KOSPI 200 futures index, halting sell orders for five minutes.
The decline was primarily driven by selling from foreign and institutional investors. In the main stock market, foreign and institutional investors sold a net 35.39 trillion won and 9.39 trillion won, respectively, while individual investors bought a net 39.44 trillion won.
Most of the top market capitalization stocks also showed weakness. Samsung Electronics fell 6.69%, SK Hynix dropped 10.53%, SK Square declined 7.71%, Hyundai Motor slipped 0.14%, LG Energy Solution decreased 1.90%, Samsung Life fell 5.59%, and Samsung C&T plummeted 14.02%. However, Samsung Electro-Mechanics rose 2.56%, and HD Hyundai Heavy Industries gained 2.15%.
The KOSDAQ also experienced a significant decline, closing at 1,002.44, down 47.29 points (-4.50%) from the previous day. During trading, it fell as low as 992.80, down 56.93 points (-5.42%), breaking below the 1000 mark for the first time since March 4. Although buying interest emerged, the index closed just above the 1000 level.
In the KOSDAQ market, foreign investors led the decline with a net sell of 178.1 billion won, while individual and institutional investors bought a net 33.9 billion won and 144.8 billion won, respectively.
Most of the top KOSDAQ stocks also saw declines. Alteogen fell 4.18%, EcoPro BM dropped 8.56%, EcoPro decreased 7.84%, Rainbow Robotics slipped 6.72%, Juseong Engineering plummeted 16.17%, Kolon TissueGene fell 9.41%, Rino Technology dropped 5.72%, Samchundang Pharmaceutical decreased 5.82%, and HLB fell 3.81%. In contrast, Wonik IPS rose 4.17%.
The sharp decline in the stock market is attributed to a correction in U.S. semiconductor stocks. On the previous night, shares of Broadcom fell 12.59%, Micron Technology dropped 7.74%, SanDisk declined 3.92%, and Western Digital fell 3.13%.
Lee Kyung-min, a researcher at Daishin Securities, noted, "Broadcom provided third-quarter AI revenue guidance of $16 billion, falling short of the expected $17.2 billion. This disappointing guidance has dampened investor sentiment in the semiconductor sector, leading to profit-taking in domestic semiconductor stocks and an overall decline."
* This article has been translated by AI.
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