The KOSPI index fell nearly 6% during trading on July 16, driven by weakened investor sentiment in the semiconductor sector and simultaneous selling by foreign and institutional investors. The KOSDAQ also continued its downward trend, dropping over 4%.
According to the Korea Exchange, as of 1:07 PM, the KOSPI was down 433.52 points (5.95%) at 6,850.89. The index started the day at around 6,960 but expanded its losses, dipping below 6,800.
In the securities market, individual investors were net buyers, purchasing 3.76 trillion won. In contrast, foreign and institutional investors sold off 1.78 trillion won and 2.15 trillion won, respectively, leading to the index's decline.
Among the top market capitalization stocks, most were in the red, with the exception of Samsung Biologics (up 1.08%). Samsung Electronics (-7.96%), SK Hynix (-11.43%), SK Square (-10.49%), Samsung Electro-Mechanics (-8.21%), Hyundai Motor (-3.57%), LG Energy Solution (-0.45%), Samsung Life Insurance (-3.56%), and KB Financial (-0.61%) all saw declines.
As the market's losses widened, a sell-side circuit breaker was triggered in the securities market. The Korea Exchange activated the sell-side circuit breaker at 9:10 AM after the KOSPI 200 futures price fell more than 5% from the reference price for over a minute, suspending the effectiveness of program trading sell orders for five minutes. This was the 19th activation of a sell-side circuit breaker this year (37th overall).
At the same time, the KOSDAQ index was down 34.49 points (4.16%) at 794.94.
In the KOSDAQ market, individual investors were net buyers, purchasing 395 billion won, while foreign and institutional investors sold off 330.4 billion won and 79.3 billion won, respectively.
Among the top market capitalization stocks in the KOSDAQ, Alteogen (-3.12%), EcoPro BM (-6.87%), EcoPro (-7.52%), JUSUNG Engineering (-6.92%), Rainbow Robotics (-7.09%), Wonik IPS (-0.35%), Kolon TissueGene (-1.03%), PSK (-2.74%), and Rino Technology (-6.42%) all showed weakness.
Jang Jin-hyuk, a senior researcher at Shinhan Investment Corp., stated, "The selling pressure has increased due to profit-taking following the previous day's surge and ongoing uncertainties surrounding the semiconductor industry. Stocks in the AI value chain, such as Samsung Electronics and SK Hynix, have been particularly affected. Last night, the Philadelphia Semiconductor Index fell over 2%, and Micron dropped 8%, adding to the negative sentiment in the domestic market."
He added, "The controversy over the suspension of data center construction in New York, concerns over the listing of China's CXMT, and interpretations of ASML's earnings are all contributing to the weakened investment sentiment in semiconductors. While the impact of interest rate hikes is already priced into the market, volatility in semiconductor-related stocks is likely to continue for the time being."
* This article has been translated by AI.
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