KOSPI Closes Down 8% at 7,400 Level... KOSDAQ Falls 9%

Circuit Breaker and Sell-Sidecar Both Triggered

Amid concerns over U.S. interest rate hikes and a decline in semiconductor stocks, the Korean stock market closed sharply lower on June 8. The KOSPI plunged by 8%, dropping to the 7,400 level, and the KOSDAQ also fell by 9%.

On June 8, the KOSPI finished at 7,484.41, down 8.29% compared to the previous session. Heavy selling pressure was evident from the start of trading, triggering a circuit breaker at around 9:03 a.m. and a sell-sidecar at 9:34 a.m.

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On the KOSPI market that day, individual investors made net purchases totaling 1.7617 trillion won. In contrast, foreign investors sold a net 355.7 billion won, and institutions sold a net 1.6242 trillion won, leading the market downturn.

Most industry sectors declined. Chemical (-6.65%), pharmaceuticals (-7.33%), metals (-7.29%), machinery and equipment (-9.68%), electrical and electronics (-8.88%), medical and precision devices (-8.37%), transportation equipment and parts (-7.76%), distribution (-8.08%), electricity and gas (-4.90%), construction (-8.31%), and securities (-10.39%) all posted losses. The telecommunications sector rose by 0.46%.

The largest-cap stocks also saw double-digit percentage declines. Key examples include Samsung Electronics (-10.18%), SK hynix (-7.68%), SK Square (-11.13%), Hyundai Motor (-8.71%), Samsung Electro-Mechanics (-5.29%), LG Energy Solution (-6.16%), Samsung Life Insurance (-8.97%), Samsung C&T (-11.29%), HD Hyundai Heavy Industries (-6.48%), and Kia (-6.02%).

The KOSDAQ ended the session at 911.39, down 9.09% from the previous day. Just before the market closed, at around 3:15 p.m., it fell to 908.46, dropping below the 910 mark. The KOSDAQ was also highly volatile throughout the day, with a morning sell-sidecar and an afternoon circuit breaker triggered.

By investor type, foreign investors were net buyers of 297.6 billion won. Individual investors sold a net 124.5 billion won, while institutions sold a net 146.6 billion won.

All of the top 10 KOSDAQ stocks by market capitalization saw sharp declines. These included Ecopro BM (-11.33%), Alteogen (-12.93%), Ecopro (-11.22%), Rainbow Robotics (-8.68%), Jusung Engineering (-12.95%), Kolon TissueGene (-9.98%), Leeno Industrial (-9.56%), HLB (-4.55%), Samchundang Pharm (-18.15%), and Peptron (-9.07%).

Lee Kyungmin, a researcher at Daishin Securities, explained the downturn by saying, "As rising interest rates dampened risk appetite, Broadcom's weak guidance strengthened profit-taking pressure on semiconductor stocks, which had recently surged. Additionally, Israel's airstrike on Iran added to Middle East geopolitical risks and upward pressure on oil prices, further weighing on stock prices."

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