"KOSPI 6000" collapsed after four trading days.

On the 3rd in the morning, the KOSPI index fell below the 6,000 level, revealing a sharp sense of powerlessness. On the 25th, the domestic stock market cheered as it broke through 6,000 points for the first time ever, but in less than a week it gave back the "dream number."

The "liquidity pyramid" that retail investors piled up this year alone by investing 2.8 trillion won collapsed helplessly due to an external variable of Middle East–driven geopolitical risk. For investors who jumped in late believing the index had settled above 6,000, fear is spreading that it was not a "settlement" but a "peak signal."

On the 3rd, a market board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul displays KOSPI and other indices. KOSPI opens at 6,165.15, down 78.98 points (1.26%) from the previous session, and KOSDAQ opens at 1,169.82, down 22.96 points (1.92%). The won/dollar exchange rate opens at 1,462.3 won, up 22.6 won. /Courtesy of Yonhap News

As of 11:21 a.m. that day, the KOSPI index was plunging 4.12% (256.98 points) from the previous trading day to 5,987.15. Even at the start of trading, it opened at 6,165.15 (down 1.26%), as if defending the 6,100 level, but as the drumbeats of war from the Middle East grew louder, foreigners dumped shares and dragged the index down.

On the supply-demand side, heavy foreign selling is pressuring the index. Foreign investors net sold 346.07 billion won just in the morning, appearing to take profits. In response, individuals net bought 348.29 billion won to support the lower end of the index, but whether the 6,000 level can be defended remains uncertain. Institutions also showed a selling advantage of 103 billion won, maintaining a cautious stance.

Large-cap stocks by market capitalization are also falling. Samsung Electronics and SK hynix are down in the 4% and 5% ranges, respectively. Only Hanwha Aerospace, grouped as a defense stock, is surging.

At the same time, the KOSDAQ index was down 1.02% (12.21 points) from the previous day at 1,180.57. The KOSDAQ index opened at 1,169.82, down 22.96 points (1.92%) from the prior trading day, turned higher in the morning, and is falling again.

In the KOSDAQ market, foreigners and institutions are net buying 316.7 billion won and 446.5 billion won, respectively, while individuals alone are net selling 731.6 billion won.

Among top KOSDAQ market-cap stocks, moves are mixed. EcoPro, Alteogen, EcoPro BM, and Sam Chun Dang Pharm are falling, while Rainbow Robotics, ABL Bio, LEENO Industrial, Kolon TissueGene, and LigaChem Biosciences are rising.

Nodong-gil, a researcher at Shinhan Investment & Securities, said, "A fierce supply-demand tug of war is taking place between foreign and individual investors," adding, "The key is whether oil and interest rates are volatile, and the stock market could be affected later depending on whether oil and interest rates rise or fall."

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