The KOSPI index fell below 8,000, triggering a circuit breaker for the first time since March 9, shortly after the outbreak of the U.S.-Iran war. The decline follows a sharp drop in U.S. semiconductor stocks over the weekend and a rise in the won-dollar exchange rate, which exceeded 1,560 won in overnight trading.
As of 9:09 a.m. on June 8, the KOSPI index was down 683.13 points (8.37%) at 7,477.46. The KOSPI 200 index also fell by 110.58 points (8.53%) to 1,186.44.
The exchange halted trading on the securities market for 20 minutes starting at 9:03:42 a.m. after the KOSPI index dropped more than 8% compared to the previous day’s closing price. At the time of the circuit breaker activation, the KOSPI index had fallen 685.85 points (8.40%) to 7,474.74. All stocks listed on the securities market were temporarily suspended from trading, along with futures and options related to stocks.
On June 5, U.S. markets saw a sell-off in semiconductor stocks after Broadcom's growth in artificial intelligence (AI) semiconductor business fell short of market expectations. Concerns grew that despite increased investment in AI infrastructure, the pace of monetization may not meet expectations, leading to a sharp decline in investor sentiment.
As a result, the Philadelphia Semiconductor Index plummeted by 10.3%, marking its largest drop since March 2020. Major semiconductor stocks, including NVIDIA, fell sharply, highlighting valuation pressures across AI-related stocks and leading to a correction in U.S. tech shares.
Currently, foreign and institutional investors are net sellers in the securities market, offloading 240.1 billion won and 68.7 billion won, respectively. In contrast, individual investors are showing a net buying position of 304.6 billion won.
Top market capitalization stocks are experiencing significant declines. Samsung Electronics is down 9.27%, while SK Hynix has dropped 8.02%. Other notable declines include SK Square (-11.53%), Hyundai Motor (-10%), Samsung Electro-Mechanics (-9.16%), Samsung Life (-14.91%), Samsung C&T (-12.27%), and Hyundai Mobis (-12.05%).
The KOSDAQ index is also in a downward trend. At the same time, the KOSDAQ index recorded a drop of 61.34 points (6.12%) to 941.10. The index fell over 4% shortly after opening, losing the 1,000-point mark and further widening its losses. A sell-side circuit breaker was also activated during the initial drop.
In the KOSDAQ market, foreign and institutional investors are net buyers of 156.9 billion won and 10.5 billion won, respectively, while individual investors are net sellers of 146.8 billion won.
Most top market capitalization stocks in the KOSDAQ are also underperforming. Stocks such as Alteogen (-6.92%), EcoPro BM (-7.05%), EcoPro (-8.23%), Rainbow Robotics (-6.14%), HLB (-4.84%), and Samchundang Pharm (-7.71%) are all declining.
Meanwhile, the exchange held an emergency market inspection meeting in response to increased volatility in domestic and international markets, discussing the situation following the sharp declines in the U.S. market and overnight futures.
* This article has been translated by AI.
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