'Black Friday' with a 5.5% Drop... Another Foreign Sell-Off Bomb

KOSDAQ Also Plunges Over 4%
"Chunsdaq" Breaks Below 1,000 Points During Intraday Trading

Yonhap News Agency

Amid a series of record-breaking sell-offs by foreign investors, the KOSPI fell by more than 5%. The KOSDAQ also declined, and at one point during intraday trading, the "Chunsdaq" (KOSDAQ above 1,000 points) momentarily collapsed.

On June 5, the KOSPI closed at 8,160.59, down 5.54% from the previous day. The index plunged sharply as massive sell orders poured in from the opening, triggering a sell-side sidecar (temporary suspension of program sell orders) at 9:08 a.m. At around 10:19 a.m., the index fell as low as 8,038.10, coming close to breaking below the 8,000-point mark.

The index was shaken by an aggressive wave of foreign selling from the start of trading. Foreign investors recorded a net sell of 4.3033 trillion won for the day. From May 7 until today, they have been net sellers for 20 consecutive trading days, with cumulative net sales reaching 70.158 trillion won over this period. Institutional investors also contributed to the sell-off, recording a net sell of 2.0583 trillion won. In contrast, retail investors made net purchases totaling 6.0079 trillion won.

Nearly all sectors declined. There were many sectors that fell by more than 3%, including distribution (-9.05%), electrical and electronics (-7.23%), manufacturing (-6.17%), insurance (-4.77%), machinery and equipment (-4.53%), IT services (-3.30%), construction (-3.18%), metals (-3.03%), and chemicals (-3.01%). Only the textile and apparel sector (up 1.02%) and the food, beverage, and tobacco sector (up 0.62%) posted gains.

The top 10 stocks by market capitalization also plummeted. Samsung C&T dropped by a staggering 13.9%. This was followed by SK hynix (-9.9%), SK Square (-7.6%), Samsung Electronics (-6.4%), Samsung Life Insurance (-5.8%), and LG Energy Solution (-1.9%), all of which posted declines. However, Samsung Electro-Mechanics (up 2.4%) and HD Hyundai Heavy Industries (up 2.0%) closed higher.

The KOSDAQ also showed a gloomy atmosphere, closing at 1,002.44, down 4.50% from the previous day. At 10:19 a.m., it dipped as low as 992.80, with the 1,000-point level momentarily breached.

Here again, foreign investors continued their selling streak. Foreign investors recorded a net sell of 252.8 billion won, while retail and institutional investors made net purchases of 105.6 billion won and 151.4 billion won, respectively.

All sectors posted losses. The declines were led by finance (-6.36%), electrical and electronics (-6.20%), chemicals (-5.32%), and distribution (-4.97%).

All top 10 stocks by market capitalization suffered sharp declines. Jusung Engineering recorded the largest drop at 16.2%. This was followed by EcoPro BM (-8.8%), EcoPro (-8.0%), Rainbow Robotics (-6.4%), Samchundang Pharm (-5.6%), Leeno Industrial (-5.5%), and Alteogen (-4.0%), all of which also fell.

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