SEOUL, June 19 (AJP) — South Korea's benchmark KOSPI surrendered a record-breaking rally Friday, retreating sharply from an all-time high above 9,300 as investors rushed to lock in profits after one of the fastest market surges in the country's history.
The KOSPI closed down 0.13 percent at 9,052.42 after soaring nearly 3 percent earlier in the session and briefly crossing the 9,300 threshold for the first time ever.
The benchmark later reversed course, falling as much as 2.56 percent intraday before managing to defend the newly established 9,000 level.
The junior KOSDAQ fell more sharply, tumbling 3.43 percent to 966.59 and slipping back below 1,000 as investors unloaded smaller growth and biotechnology shares following weeks of outsized gains.
The selloff was initially driven by domestic supply-demand pressure. Foreign and institutional investors turned heavy sellers on the main board, unloading a combined 2.4 trillion won ($1.75 billion) worth of shares. Foreigners sold a net 983 billion won, while institutions offloaded 1.45 trillion won. Retail investors absorbed the selling, purchasing a net 2.53 trillion won.
The reversal came just a day after the KOSPI closed above 9,000 for the first time, leaving investors increasingly wary of stretched valuations after a historic run.
The benchmark has surged more than 10 percent this week alone, fueled largely by semiconductor shares and a handful of mega-cap technology stocks. That concentration left the market vulnerable to profit-taking as investors questioned how much further the rally could extend in the near term.
Technology shares delivered mixed performances.
Samsung Electronics fell 2.34 percent to 354,000 won as investors booked profits following its recent surge.
In contrast, SK hynix gained 2.94 percent to 2,764,000 won after touching a fresh all-time high of 2,891,000 won earlier in the day.
SK Square climbed 4.71 percent to 1,780,000 won, extending gains as investors continued to favor companies tied to artificial intelligence and long-term technology themes.
Buying also rotated into selected defensive and financial names. Samsung Life Insurance jumped 5.97 percent, Hyundai Motor rose 2 percent, and LG Energy Solution added 1.12 percent. Samsung Electro-Mechanics gained 3.18 percent as investors shifted toward companies perceived to have more durable earnings visibility beyond the semiconductor boom.
Meanwhile, Samsung Biologics fell 3.92 percent as investors rotated away from some of this year's biggest winners.
The KOSDAQ saw broad-based weakness. Jusung Engineering plunged 9.13 percent, while Alteogen, Kolon TissueGene, Rainbow Robotics and HLB all fell around 4 percent or more. EcoPro BM and EcoPro also declined as investors reduced exposure to higher-risk growth stocks.
The Korean won briefly weakened to the 1,540 level before recovering slightly to close at 1,530.4 against the U.S. dollar.
External risks also weighed on sentiment.
Risk appetite softened after reports that follow-up U.S.-Iran talks had been delayed, including the postponement of U.S. Vice President J.D. Vance's expected trip to Switzerland, raising concerns that diplomatic momentum between Washington and Tehran may be losing steam. U.S. index futures also weakened during Asian trading, adding to intraday pressure on Seoul.
Semiconductor-related concerns resurfaced after reports that Washington was increasingly worried about advanced chipmaking equipment from Dutch manufacturer ASML reaching China.
The report added caution across semiconductor stocks, while speculation over a possible reduction in SK hynix's weighting in FTSE Russell's global index rebalancing raised concerns about short-term supply pressure.
Elsewhere in Asia, Japan's Nikkei 225 rose 0.28 percent to 71,250.06, remaining near record territory as enthusiasm for artificial intelligence-related shares persisted, though gains became more selective.
Advantest jumped 4.75 percent to 31,740 yen on optimism over AI-driven semiconductor demand, while fellow chip-equipment maker Lasertec fell 2.39 percent to 55,100 yen. Mitsubishi UFJ Financial Group dropped 2.85 percent to 3,278 yen as financial shares lagged despite the Bank of Japan's recent rate hike.
Hong Kong's Hang Seng Index fell 1.59 percent to 23,924.81, while mainland Chinese markets were closed for the Dragon Boat Festival.
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