The KOSPI index dropped more than 3% in early trading as profit-taking surged following the announcement of Samsung Electronics' preliminary second-quarter earnings. Although the results exceeded market expectations, a sell-on sentiment emerged, particularly impacting semiconductor stocks.
As of 9:10 a.m. on July 7, the KOSPI was down 245.08 points (3.04%) at 7,797.83. The index opened at 7,919.20, down 132.13 points (1.64%), and continued to decline, falling to the 7,700 level.
In the securities market, individual investors purchased a net 383.4 billion won, while foreign and institutional investors sold a net 258.7 billion won and 144.8 billion won, respectively, contributing to the index's decline.
Among the top market capitalization stocks, most were down, including Samsung Electronics (-5.66%), SK Hynix (-2.77%), SK Square (-5.02%), Samsung Electro-Mechanics (-0.98%), Hyundai Motor (-5.28%), LG Energy Solution (-2.96%), Samsung Life Insurance (-3.43%), Samsung C&T (-3.23%), and Samsung Biologics (-0.71%).
At the same time, the KOSDAQ index rose by 8.19 points (0.97%) to 855.26. It opened at 843.74, down 3.33 points (0.39%), but turned upward due to institutional buying.
In the KOSDAQ market, institutions purchased a net 36.2 billion won, while individuals and foreigners sold a net 27.6 billion won and 7.8 billion won, respectively.
Among the top KOSDAQ stocks, Alteogen (0.60%), Juseong Engineering (4.51%), Kolon TissueGene (3.96%), HLB (0.92%), and ABL Bio (3.77%) saw gains. Conversely, EcoPro BM (-1.40%), EcoPro (-0.94%), Rainbow Robotics (-0.42%), Wonik IPS (-1.61%), and Rino Technology (-2.27%) experienced declines.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Despite a favorable external environment with strong U.S. markets and easing oil price pressures, the market's reaction to Samsung Electronics' second-quarter earnings will determine the momentum for intraday rebounds. While the results surpassed market expectations, short-term sell-on pressures and expectations for the industry will likely create a tug-of-war in buying and selling."
He added, "The recent volatility in semiconductor stocks is largely a technical correction following rapid increases. The confirmation of profit momentum in semiconductors during this earnings season will influence the KOSPI's recovery strength this week."
* This article has been translated by AI.
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