The KOSPI index fell nearly 8% due to massive sell-offs by foreign and institutional investors, dropping to the 7400 range. The index experienced an over 8% decline for more than a minute, triggering the first stage of the circuit breaker (CB) in the securities market this year.
As of 1:59 PM on July 7, the KOSPI was down 646.85 points (8.03%) at 7404.48 compared to the previous trading day.
The index continued to decline, and at approximately 1:51 PM, it fell more than 8% for a minute, leading to a 20-minute suspension of trading in the securities market. The Korea Exchange activated the first stage of the circuit breaker at 1:51:33 PM when the KOSPI dropped to 7401.56, marking an 8.07% decrease from the previous day.
The first stage of the circuit breaker halts trading for 20 minutes if the KOSPI remains down more than 8% for one minute. If the index falls more than 15% from the previous close and drops an additional 1% from the first stage activation level, the second stage is triggered. A decline of more than 20% from the previous close and an additional 1% drop from the second stage activation level would result in the third stage, ending trading for the day.
Just before the circuit breaker was activated, foreign and institutional investors led the decline, selling a net 3.9696 trillion won and 649.2 billion won, respectively. In contrast, individual investors bought a net 4.5058 trillion won, absorbing the sell-off.
Most of the top market capitalization stocks showed significant declines. Samsung Electronics fell 9.91%, SK Hynix dropped 10.54%, SK Square decreased 13.18%, Samsung Electro-Mechanics was down 11.98%, LG Energy Solution fell 8.07%, Hyundai Motor dropped 8.74%, Samsung Life Insurance decreased 7.88%, Samsung C&T fell 8.01%, and Samsung Biologics was down 1.28%.
At the same time, the KOSDAQ index recorded a decline of 30.73 points (3.63%), reaching 816.34 compared to the previous trading day.
In the KOSDAQ market, individual investors sold a net 303.9 billion won, while foreign and institutional investors bought a net 211.2 billion won and 96.6 billion won, respectively.
Among the top market capitalization stocks, Alteogen rose 0.15%, Kolon TissueGene increased 2.60%, HLB was up 1.95%, and ABL Bio gained 2.99%. However, EcoPro BM fell 2.71%, EcoPro dropped 3.16%, Rainbow Robotics decreased 6.56%, JUSUNG Engineering was down 3.19%, Wonik IPS fell 11.08%, and Rino Technology dropped 5.87%.
* This article has been translated by AI.
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