The KOSPI index fell below 7000 on July 24, impacted by escalating geopolitical risks in the Middle East and a sharp decline in U.S. tech stocks. Following a broad drop in the New York stock market the previous day, investor sentiment has weakened, leading to early trading losses.
As of 9:04 a.m. on July 24, the KOSPI was down 129.22 points (1.82%) at 6967.67. The index opened at 7000.78, down 96.11 points (1.35%).
In the securities market, foreign investors sold a net 417.6 billion won, while institutions also sold 132.1 billion won. In contrast, individual investors were net buyers, purchasing 570.4 billion won.
Among the top market capitalization stocks, Samsung Biologics was the only gainer, rising 4.06%. Conversely, major companies such as Samsung Electronics (-3.33%), SK Hynix (-4.01%), SK Square (-6.72%), Hyundai Motor (-5.21%), LG Energy Solution (-3.74%), Samsung C&T (-3.61%), KB Financial (-3.52%), Samsung Life (-3.34%), Kia (-3.20%), and Samsung Electro-Mechanics (-3.18%) all experienced declines.
At the same time, the KOSDAQ index was trading at 772.15, down 18.13 points (2.29%) from the previous day. Individual investors were net buyers in the KOSDAQ as well, purchasing 120.8 billion won, while foreign and institutional investors sold 64.6 billion won and 54.4 billion won, respectively.
Among the top KOSDAQ stocks, HLB surged by 16.33%. However, other stocks such as Rainbow Robotics (-9.84%), EcoPro BM (-5.50%), Wonik IPS (-5.47%), EcoPro (-4.98%), JUSUNG Engineering (-4.45%), Rino Technology (-4.33%), PSK (-3.57%), and Alteogen (-1.14%) all fell.
Analysts suggest that the domestic market is taking a breather following the significant drop in U.S. tech stocks. On July 23, the Dow Jones Industrial Average closed down 506.93 points (0.97%) at 51,711.65. The S&P 500 fell 90.66 points (1.21%) to 7408.30, while the tech-heavy Nasdaq Composite plummeted 553.21 points (2.15%) to 25,137.69.
Notably, shares of Alphabet and Tesla saw significant declines. Despite reporting better-than-expected earnings, Alphabet's stock dropped nearly 7% due to concerns over deteriorating free cash flow from large AI investments. Tesla's stock fell over 14% amid worries about cash flow following disappointing second-quarter results and expanded investments.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to open lower due to increased geopolitical uncertainty between the U.S. and Iran, as well as the fallout from the decline in the U.S. stock market. However, during the trading session, we may see some stabilization, particularly in the semiconductor sector, which could help reduce losses."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.