On the 6th, as household money flowed into a plunging stock market, the KOSPI index held up and closed. The KOSPI, which had been threatened at 4,900 points early in the session, recovered 5,000 points.
That day, the KOSPI finished at 5,089.14, down 74.43 points (1.44%) from the previous trading day. Early in the session, the index plunged 5%, and with a sharp drop in the futures market, a "sell sidecar" was triggered, but as retail money came in, the losses steadily narrowed.
Foreign investors posted a net sell of 3.3 trillion won on the main bourse, but household funds moved to defend the index. Individuals net bought 2.1 trillion won, and the financial investment account of institutions, where trading in exchange-traded funds (ETFs) that individuals trade heavily is tallied, also showed a 600 billion won buying advantage. Pension funds also net bought 130 billion won.
What shocked the market early was concern over mounting artificial intelligence (AI) fears in the United States overnight. As bubble worries rose over AI investments into which big tech is pouring massive funds, and with confirmation that the U.S. job market was also weak, U.S. stocks fell across the board.
With fear pervasive, before the domestic regular session began, Samsung Electronics and SK hynix briefly traded at their lower limits in the premarket amid low volumes. The market opened with a crash. Selling by foreign investors was particularly strong.
But as individual money flowed in, the market tone shifted somewhat. On online communities, analysis appeared calling it a "Samsung Electronics, SK hynix bargain sale," and in reality, as retail money came in during the dip, losses in major stocks narrowed sharply.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "While concerns grew about the profitability of U.S. big tech, supportive analysis emerged for Korean semiconductors, and the market rebounded in a 'V' shape centered on semiconductors."
While large-cap stocks fell across the board, the losses narrowed markedly compared with early trading. Notably, money was seen rotating into "defensive stocks." KB Financial, which has a high dividend payout ratio, surged, and Shinhan Financial Group, Hana Financial Group, and KT&G rose.
The KOSDAQ market showed a similar pattern. The KOSDAQ index plunged 4%–5% early in the session, but as losses narrowed, it finished at 1,080.77, down 27.64 points (2.49%).