Panic on the Markets: KOSPI Struggles Near 7000, KOSDAQ Falls Below 800

◆Aju Economic Major News
▷Panic on the Markets: KOSPI Struggles Near 7000, KOSDAQ Falls Below 800
- The KOSPI index briefly turned positive during the day due to low-price buying but closed down 5.35% at 7246.79 as selling pressure intensified in the afternoon. The KOSDAQ also fell 5.56%, dipping below 800 for the first time in nearly 10 months.
- With extreme volatility during the trading session, both the KOSPI and KOSDAQ markets triggered a sell-side circuit breaker, continuing a rollercoaster trend of sharp declines and rebounds in the domestic stock market.
- On this day, foreign investors returned to net buying in both the KOSPI and KOSDAQ, but this was not enough to counteract the selling pressure from individuals and institutions, leading to a decline in the indices.
- Analysts noted that the recent drop in the stock market was influenced by deteriorating semiconductor investment sentiment following Samsung Electronics' preliminary earnings announcement, as well as rising international oil prices and U.S. Treasury yields due to military tensions between Iran and the U.S.
- Most of the large-cap stocks, including Samsung Electronics and SK Hynix, saw significant declines. Experts assessed that the KOSPI's valuation has fallen to its lowest level since the financial crisis, indicating that the recovery of investment sentiment will be a key factor for a market rebound.

◆Major Reports
▷Mixed Trends Reflecting Geopolitical Concerns [Samsung Securities]
- The New York stock market showed mixed trends as geopolitical concerns grew following President Trump's remarks suggesting the invalidation of Middle East ceasefire negotiations. Rising international oil prices and U.S. Treasury yields added pressure to the market.
- Later, President Trump indicated that the likelihood of a full-scale military conflict was low and that the situation would stabilize soon, allowing the market to recover some of its losses during the session.
- The Dow Jones Industrial Average fell 1.09% and the S&P 500 dropped 0.28%, but the Nasdaq rose 0.20% and the Philadelphia Semiconductor Index gained 2.23%, buoyed by buying interest in semiconductor stocks.
- Nvidia rose 3.65% on expectations of China allowing imports of its H200 chips, while Broadcom surged nearly 5% following news of a long-term supply contract with Apple, highlighting strength in semiconductor and memory-related stocks.
- WTI crude oil surged 4.37% to $73.52 per barrel, while U.S. Treasury yields for both 10-year and 2-year notes also increased. The dollar remained stable, and gold prices fell 1.79%.

◆Key Disclosures After Market Close (July 8)
▷Taesung signs a supply contract for PCB automation equipment worth 4.3 billion won for Vietnam
▷Kakao Games decides to retire 29.8 billion won worth of its own shares
▷Kia transitions to a dual CEO system with Song Ho-sung and Song Min-soo
▷Central Vaccine signs a supply contract for foot-and-mouth disease vaccines worth 5.8 billion won with the Public Procurement Service
▷The exchange will lift the trading suspension on EnGen Bio shares on July 13

◆Fund Trends (as of July 6, excluding ETFs)
▷Domestic equity funds: +46.4 billion won
▷Overseas equity funds: -1.8 billion won

◆Key Schedule for Today (July 9)
▷China: Consumer Price Index (June), Producer Price Index (June)
▷Germany: Import and Export Trends (May)
▷U.S.: Existing Home Sales (June)

* This article has been translated by AI.