The KOSPI index fell more than 2% in early trading, retreating to the 7450 level due to a sharp decline in U.S. semiconductor stocks and heightened geopolitical risks in the Middle East. The downturn in the U.S. market, driven by weak semiconductor performance and a surge in international oil prices, has impacted the domestic market.
As of 9:05 a.m. on July 8, the KOSPI was down 196.40 points (2.57%) at 7459.91. The index opened at 7452.48, down 203.83 points (2.66%), and continued to show weakness around the 7450 mark.
In the securities market, foreign and institutional investors have net purchased 280.1 billion won and 341.9 billion won, respectively, while individual investors have net sold 624 billion won.
Among the top market capitalization stocks, most are in decline, including Samsung Electronics (-4.22%), SK Hynix (-5.00%), SK Square (-8.19%), Samsung Electro-Mechanics (-8.92%), Hyundai Motor (-2.50%), LG Energy Solution (-3.77%), Samsung Life Insurance (-6.40%), Samsung Biologics (-1.13%), and Samsung C&T (-5.65%).
At the same time, the KOSDAQ index recorded a decline of 21.75 points (2.62%), standing at 809.48. It opened at 816.39, down 14.84 points (1.79%), and has since widened its losses.
In the KOSDAQ market, institutions have net purchased 5 billion won, while individuals have net bought 200 million won. Foreign investors have net sold 5.7 billion won.
Most of the top KOSDAQ stocks are also showing weakness, including Alteogen (-2.52%), EcoPro BM (-4.49%), EcoPro (-3.55%), Rainbow Robotics (-5.11%), Kolon TissueGene (-1.27%), JUSUNG Engineering (-6.26%), HLB (-0.39%), Rino Technology (-2.64%), Wonik IPS (-5.77%), and ABL Bio (-3.09%).
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to show high volatility from the outset due to the weakness in the U.S. market and uncertainties related to the Strait of Hormuz. However, the potential for a recovery in the index may arise from reduced losses in U.S. semiconductor stocks in the latter part of the trading day and the influx of bargain-hunting following recent sharp declines."
He added, "The extreme volatility in the market has led to a sentiment where even positive news is interpreted negatively, but there are no confirmed signals of a peak in earnings yet. Given that the KOSPI's valuation has dropped to levels comparable to the financial crisis, the risk of further declines is limited, and a strategy of gradual buying is advisable."
* This article has been translated by AI.
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