The KOSPI index dropped more than 6% in early trading on August 19, before partially recovering, but continued selling by foreign and institutional investors has left it struggling around the 6500 mark. The domestic market is being pressured by rising U.S. long-term Treasury yields and a sharp decline in semiconductor stocks, while individual investors have stepped in to buy more than 4 trillion won worth of shares.
As of 1:21 p.m. KST, the KOSPI was trading at 6478.56, down 391.27 points (5.70%) from the previous trading day.
The index opened at 6528.77, down 341.06 points (4.96%), and fell as much as 469.02 points (6.83%) to 6400.81 in early trading. Although it has since reduced some of its losses, it is facing challenges in recovering the 6500 level due to ongoing selling pressure from foreign and institutional investors.
At 9:06:02 a.m., a sell-side circuit breaker was triggered in the securities market, temporarily halting the effectiveness of program sell orders. This was triggered when the KOSPI 200 futures price fell 6.02% from the reference price. This marks the 25th time this year that a sell-side circuit breaker has been activated in the securities market.
At this time, foreign and institutional investors have net sold 27.54 billion won and 17.51 billion won, respectively, while individual investors have net bought 43.71 billion won, attempting to support the index.
Among the top market capitalization stocks, Samsung Electronics (-7.45%), SK Hynix (-9.03%), SK Square (-10.57%), Samsung Electro-Mechanics (-5.21%), Hyundai Motor (-5.29%), Samsung Biologics (-0.20%), and KB Financial (-3.15%) are all experiencing declines. In contrast, LG Energy Solution (1.28%) and Hanwha Aerospace (1.57%) are seeing gains.
Notably, Samsung Electronics and SK Hynix, which had been strong until the previous day, have dropped by 7% to 9%, leading the decline in semiconductor stocks. However, some defense stocks are seeing buying interest, showing a differentiated trend.
At the same time, the KOSDAQ index recorded 829.84, down 4.36 points (0.52%) from the previous trading day. The KOSDAQ fell more than 2% in early trading but has significantly reduced its losses, hovering around the 830 mark.
In the KOSDAQ market, foreign and institutional investors have net bought 4.39 billion won and 4.43 billion won, respectively, while individual investors have net sold 9.39 billion won.
Among the top market capitalization stocks, Rainbow Robotics (-1.17%), Juseong Engineering (-1.95%), and HLB (-1.85%) are declining. Conversely, Alteogen (2.35%), EcoPro (0.46%), EcoPro BM (1.92%), Wonik IPS (0.36%), Rino Technology (1.77%), IOTech (1.69%), and ABL Bio (1.50%) have turned positive compared to early trading.
The sharp decline in the domestic stock market today is attributed to the simultaneous rise in U.S. long-term interest rates and weakness in semiconductor stocks. Overnight, the yield on U.S. 30-year Treasury bonds exceeded 5.33%, reaching its highest level since 2007, while semiconductor stocks like Micron and SanDisk, which had recently been strong, faced significant selling pressure as investors took profits.
* This article has been translated by AI.
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