The KOSPI index dropped more than 5% as concerns over semiconductor investments combined with geopolitical risks in the Middle East. The sell-off triggered trading halts in both the KOSPI and KOSDAQ markets as investor sentiment sharply declined.
On July 8, the Korea Exchange reported that the KOSPI closed at 7,246.79, down 409.52 points (5.35%) from the previous trading day.
The index opened at 7,452.48, down 203.83 points (2.66%), but briefly turned positive during the day due to bargain hunting by foreign and institutional investors. However, selling pressure, particularly in semiconductor stocks, intensified in the afternoon, leading to a larger decline by the close.
As volatility increased, both markets activated trading halts. At 1:31:58 PM, the KOSPI 200 futures price fell 5.21% to 1,174.36, prompting a five-minute suspension of sell orders in the securities market. Shortly after, at 1:33:58 PM, the KOSDAQ 150 futures price dropped 6.31%, and the KOSDAQ 150 index fell 6.76%, resulting in a similar suspension in the KOSDAQ market.
Overnight, U.S. markets fell as the impact of Samsung Electronics' sharp decline spread to American semiconductor stocks, compounded by rising international oil prices due to geopolitical tensions in the Strait of Hormuz. Major semiconductor stocks like Micron (-4.71%) and SanDisk (-7.26%) saw significant drops, further dampening investor sentiment in the domestic market.
On this day, foreign investors net purchased 474.2 billion won in the securities market, while individuals and institutions sold 394.1 billion won and 135.7 billion won, respectively.
Among the top market capitalization stocks, Samsung Electronics (-6.25%), SK Hynix (-5.68%), SK Square (-6.34%), Samsung Electro-Mechanics (-10.25%), Hyundai Motor (-3.55%), LG Energy Solution (-4.97%), Samsung Life Insurance (-7.73%), Samsung C&T (-6.95%), and Samsung Biologics (-4.15%) all closed lower.
The KOSDAQ index finished at 785.00, down 46.23 points (5.56%). It opened at 816.39, down 14.84 points (1.79%), and continued to decline throughout the day.
In the KOSDAQ market, foreign investors net purchased 337.0 billion won, while individuals and institutions sold 197.0 billion won and 137.5 billion won, respectively.
Among the top KOSDAQ stocks, Alteogen (-7.11%), EcoPro BM (-6.32%), EcoPro (-7.58%), Rainbow Robotics (-6.75%), JUSUNG Engineering (-8.88%), and Kolon TissueGene (-7.84%) all showed significant weakness.
Lee Kyung-min, a researcher at Daishin Securities, stated, "Following Samsung Electronics' earnings announcement, doubts about the semiconductor industry persist, and with the added geopolitical risks in the Middle East, volatility in the domestic market has increased. As foreign selling continues, risk-averse sentiment has intensified, leading to broader declines across all sectors."
* This article has been translated by AI.
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