The KOSPI index fell more than 6%, dropping to the 6,800 level due to massive sell-offs by foreign and institutional investors. The volatility in the market increased significantly, prompting the activation of sell-side circuit breakers in both the KOSPI and KOSDAQ markets.
On July 16, the Korea Exchange reported that the KOSPI closed at 6,820.60, down 463.81 points (6.37%) from the previous trading day.
The index opened at 6,960.50, down 323.91 points (4.45%), and continued to decline, reaching the 6,800 level during trading.
As volatility increased early in the session, sell-side circuit breakers were activated in both markets. The Korea Exchange triggered a sell-side circuit breaker at 9:10 a.m. when the KOSPI 200 futures price fell more than 5% from the reference price for one minute, suspending the effectiveness of program sell orders in the securities market for five minutes. Subsequently, at 10:20 a.m., the KOSDAQ 150 futures price dropped 6.07%, and the KOSDAQ 150 index fell 5.52% for one minute, leading to a similar suspension in the KOSDAQ market.
Overnight, U.S. stocks closed higher as the Producer Price Index (PPI) for June fell 0.3% from the previous month, below market expectations, and major financial firms like BlackRock and Morgan Stanley reported strong earnings. However, the Philadelphia Semiconductor Index dropped 2.08%, and shares of SK Hynix's American Depositary Receipts (ADRs) fell 9%, contributing to a decline in investor sentiment in the domestic market.
In the securities market, individual investors made a net purchase of 4.8972 trillion won, while foreign and institutional investors sold a net 2.0107 trillion won and 3.0861 trillion won, respectively.
Among the top market capitalization stocks, most saw declines, including SK Hynix (-11.53%), Samsung Electronics (-8.77%), SK Square (-12.30%), Samsung Electro-Mechanics (-9.62%), Hanmi Semiconductor (-10.02%), Hyundai Motor (-2.07%), LG Electronics (-7.73%), and KB Financial (-0.28%).
The KOSDAQ index closed at 791.84, down 37.59 points (4.53%). It opened at 813.32, down 16.11 points (1.94%), and fell below the 800 level due to selling pressure from foreign and institutional investors.
In the KOSDAQ market, individual investors made a net purchase of 508.7 billion won, while foreign and institutional investors sold a net 371.4 billion won and 157.6 billion won, respectively.
Among the top KOSDAQ stocks, declines were seen in Alteogen (-4.16%), EcoPro BM (-7.03%), EcoPro (-7.41%), JUSUNG Engineering (-10.31%), Rainbow Robotics (-7.67%), Wonik IPS (-1.40%), PSK (-4.45%), Rino Industry (-7.19%), and Kolon TissueGene (-20.28%).
Lee Kyung-min, a researcher at Daishin Securities, stated, "The sharp decline in U.S. semiconductor stocks has raised concerns about the memory market, leading to increased selling pressure from foreign and institutional investors, particularly on Samsung Electronics and SK Hynix. The investment sentiment has significantly weakened, resulting in the 19th activation of sell-side circuit breakers for the KOSPI and KOSDAQ this year, further amplifying market volatility."
* This article has been translated by AI.
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