The KOSPI opened sharply lower, dropping over 5% due to the impact of weak U.S. tech stocks. The index fell below the 6400 mark early in the session and continued to decline, prompting a sell-side circuit breaker as investor sentiment rapidly deteriorated.
According to the Korea Exchange, as of 9:14 a.m. on July 28, the KOSPI was down 462.04 points (6.84%) at 6293.71. The index started the day at 6400.27, down 355.48 points (5.26%), and the losses widened thereafter.
In response to the steep decline, a sell-side circuit breaker was triggered at 9:06 a.m. The sell-side circuit breaker is activated when the price of the most traded futures contract based on KOSPI 200 falls by more than 5% and remains at that level for one minute. When activated, the effectiveness of sell orders in program trading is suspended for five minutes before automatically lifting.
This marks the 22nd activation of a sell-side circuit breaker in the securities market this year. Including buy-side circuit breakers, this is the 42nd activation overall.
In the securities market, foreign investors and institutions have sold a net 486.8 billion won and 277.3 billion won, respectively. In contrast, individual investors have purchased a net 752.9 billion won, indicating a move towards bargain hunting.
Most of the top stocks by market capitalization in the KOSPI are experiencing declines. Samsung Electronics is down 8.27%, SK Hynix by 9.91%, SK Square by 9.76%, Samsung Electro-Mechanics by 11.32%, Hyundai Motor by 5.46%, LG Energy Solution by 3.15%, KB Financial by 0.12%, and Samsung Life by 8.03%. However, Samsung Biologics is up 0.65%.
At the same time, the KOSDAQ index has fallen by 38.12 points (4.98%) to 726.74. It started the day at 742.13, down 22.73 points (2.97%), and continued to decline.
In the KOSDAQ market, individual investors have made a net purchase of 44.3 billion won, while foreign investors and institutions have sold a net 31.8 billion won and 12.6 billion won, respectively.
Top stocks in the KOSDAQ are also showing weakness, with Alteogen down 1.28%, EcoPro by 5.58%, EcoPro BM by 5.34%, Rainbow Robotics by 7.96%, JUSUNG Engineering by 11.21%, Rino Technology by 8.17%, Wonik IPS by 12.83%, HLB by 3.82%, ABL Bio by 3.86%, and PSK by 10.34%.
* This article has been translated by AI.
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