The KOSPI index briefly surpassed the 8,000 mark for the first time but then fell sharply due to profit-taking. The sell-off in the stock market intensified, triggering a trading halt for the first time in nearly a month.
According to the Korea Exchange, the KOSPI closed at 7493.18, down 488.23 points (-6.12%) from the previous trading day.
The index opened at 7951.75, down 29.66 points (-0.37%), but managed to rise to 8046.78, breaking the 8,000 barrier early in the session. However, profit-taking by foreign investors quickly erased those gains, leading to a significant decline as the session progressed, pushing the index down to the 7,400 range.
At 1:28:49 PM, a trading halt was triggered due to a sudden fluctuation in the KOSPI 200 futures index, stopping program sell orders for five minutes. This was the first trading halt in the KOSPI market since April 2.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The sharp decline in the KOSPI today reflects the overheating concerns following a short-term surge, compounded by heightened anxiety over interest rate hikes and rising bond yields, which acted as triggers for the reversal and further decline. The end of the first-quarter earnings season also contributed to profit-taking sentiment as expectations peaked."
Han Ji-young, a researcher at Kiwoom Securities, added, "After the conclusion of the U.S.-China summit, attention has shifted to the ongoing negotiations between the U.S. and Iran, which are causing persistent noise. Additionally, the U.S. 10-year Treasury yield has surpassed 4.5%, and the recent inflation shocks from the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) are causing ripples in the market."
"In a similar vein, Japan's inflation shock this morning has prompted rising interest rates in Japan, influencing other countries' rates as well. The surge in the dollar-won exchange rate, which has climbed back to around 1500 won, has led to increased foreign selling. The KOSPI's 20.9% surge since May 1 has also raised concerns about the pace of that increase and the extreme concentration in a few sectors," she added.
In the stock market, individual investors bought a net 7.1943 trillion won, attempting to support the index. In contrast, foreign and institutional investors sold a net 5.6195 trillion won and 1.7396 trillion won, respectively, focusing on profit-taking.
Major stocks also experienced declines. Samsung Electronics fell 7.77%, SK Hynix dropped 6.65%, SK Square decreased 5.81%, Hyundai Motor was down 1.69%, LG Energy Solution fell 5.66%, Samsung Electro-Mechanics dropped 0.39%, Doosan Enerbility decreased 5.29%, HD Hyundai Heavy Industries fell 5.37%, and Kia was down 5.17%.
The KOSDAQ index also closed sharply lower, finishing at 1129.82, down 61.27 points (5.14%). The index opened higher at 1197.23 but quickly turned downward as investor sentiment weakened.
In the KOSDAQ market, foreign investors bought a net 363.4 billion won, while individuals and institutions sold a net 144.6 billion won and 167.2 billion won, respectively.
Most major stocks in the KOSDAQ also showed weakness, including Alteogen (-3.90%), EcoPro BM (-8.52%), EcoPro (-8.92%), Rainbow Robotics (-3.80%), Kolon TissueGene (-2.36%), Samchundang Pharm (-4.44%), Rino Technology (-10.95%), Ligand Pharmaceuticals (-2.35%), HLB (-2.44%), and ABL Bio (-5.10%).
* This article has been translated by AI.
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