'Trump Fallout' KOSPI Drops 4.47% to 5,200 Level... KOSDAQ Also Plummets

Market Opens Higher, Then Reverses Downward
Trump Says "Extremely Powerful Strikes in 2–3 Weeks"
Consecutive Sell-Side Sidecar Triggers

The KOSPI closed at the 5,200 level, dropping by 4.47%, following U.S. President Donald Trump's remarks that the "strikes on Iran will continue."

As the domestic stock market experiences extreme volatility characterized by a 'rollercoaster market' due to statements from U.S. President Donald Trump, on April 2nd, in the dealing room at Hana Bank's headquarters in Jung-gu, Seoul, the KOSPI, which rose before President Trump's nationwide address (left photo), plunged over 2% after the speech (right photo), continuing its sharp decline. Photo by Jo Yongjun

On April 2, the KOSPI finished at 5,234.05, down 244.65 points (4.47%) from the previous session. The index opened at 5,551.69, up 72.99 points (1.33%), but reversed course and declined after President Trump's speech.

Individual investors recorded a net purchase of 1.5912 trillion won. Foreign investors and institutions net sold 450.9 billion won and 1.5185 trillion won, respectively. By sector, construction (-7.72%), medical & precision instruments (-7.30%), securities (-7.17%), electrical & electronics (-5.56%), and entertainment & culture (-5.47%) all showed weakness. Among large-cap stocks, Samsung Electronics dropped by 5.91%, SK hynix by 7.05%, Hyundai Motor by 4.61%, and SK Square by 0.61%.

At 2:46:15 p.m., a "sidecar" was triggered on the KOSPI due to volatility in the KOSPI200 futures index, resulting in a five-minute suspension of program sell orders. This was the first occurrence since March 23. At the time, the KOSPI200 futures index was at 771.10, down 40.95 points (5.04%) from the previous closing price. The sell-side sidecar is triggered when the KOSPI200 futures index drops by 5% or more and remains at that level for one minute.

The KOSDAQ index closed at 1,161.52, down 18.04 points (1.58%). Individual investors net purchased 734.8 billion won, while foreign investors and institutions net sold 189.8 billion won and 523.6 billion won, respectively. By sector, pharmaceuticals (-7.72%), non-metallics (-6.47%), general services (-6.28%), distribution (-5.59%), and manufacturing (-5.31%) were weak. Among the top market cap stocks, Ecopro declined by 4.49%, Ecopro BM by 2.52%, Alteogen by 2.22%, Samchundang Pharm by 18.15%, and Rainbow Robotics by 3.21%.

At 2:34:32 p.m., the KOSDAQ experienced a five-minute suspension of program sell orders due to volatility in the KOSDAQ150 futures and spot indices. This was the first time in about a month since March 9. At the time of the event, the KOSDAQ150 futures price was 1,818.40, down 116.40 points (6.01%) from the previous close, and the KOSDAQ150 spot index stood at 1,808.31, down 124.54 points (6.44%). The KOSDAQ sidecar is triggered when the KOSDAQ150 futures price drops by 6% or more from the base price and the KOSDAQ150 index falls by 3% or more from the previous trading day's final figure, both conditions sustained for one minute.

On April 1 (local time), President Trump delivered a nationwide address at the White House, stating, "Over the next two to three weeks, we will deliver extremely powerful strikes against Iran."

This content was produced with the assistance of AI translation services.