On the 4th, the KOSPI plunged more than 12%, helplessly losing the 5,100 level. This is an unprecedented situation that even surpasses the record drop during the Sept. 11, 2001, terrorist attacks.
As the U.S. and Israel's attack on Iran spread fears of a full-scale war, the market fell into an uncontrollable state, and sell-sidecars and circuit breakers were triggered one after another on both the KOSPI and KOSDAQ, but it was far from enough to stem the flood of panic selling.
The KOSPI closed at 5,093.54, down 698.37 points (12.06%) from the previous session. The KOSPI fell below the 5,100 level for the first time in 14 sessions since on the 6th of last month (5,089.14). It slid to as low as 5,059.45 intraday.
The drop was much steeper even compared with major Asian markets, where Japan's Nikkei 225 fell in the 3% range and Hong Kong's Hang Seng in the 2% range.
Just two sessions earlier, on the 27th of last month, the KOSPI stood at 6,244.13 points, but it evaporated 1,150 points in two days. Of all KOSPI listings, 911 fell, one was flat, and only 13 rose.
On the main board, individuals and foreigners were net sellers of 571.6 billion won and 463.3 billion won, respectively. Institutions bought a net 847.4 billion won.
Among KOSPI heavyweights, Samsung Electronics and SK hynix fell in the 11% and 9% ranges.
Other large-cap names also sank sharply, including Doosan Enerbility (-16.82%), Hyundai Motor (-15.80%), Kia (-14.04%), HD Hyundai Heavy Industries (-13.39%), SK Square (-12.74%), LG Energy Solution (-11.58%), Samsung Biologics (-9.82%), and Hanwha Aerospace (-7.61%).
The KOSDAQ also tumbled, finishing at 978.44, down 159.26 points (14.00%) from the previous session. On the KOSDAQ, 1,708 stocks closed lower. Only 50 names were unchanged (19) or higher (25).
Individuals dumped 1.2023 trillion won worth of shares, pulling the index down. Foreigners and institutions were net buyers of 1.1716 trillion won and 27.8 billion won, respectively.
Top KOSDAQ names also turned deeply blue. EcoPro, the KOSDAQ bellwether, plunged more than 18%, and ABL Bio and Caregen fell in the 17% range. EcoPro BM (-16.99%), Rainbow Robotics (-16.19%), LigaChem Biosciences (-15.81%), Sam Chun Dang Pharm (-14.46%), Alteogen (-13.32%), Kolon TissueGene (-13.32%), and LEENO Industrial (-9.51%) also declined.
Amid the intraday plunge in the KOSPI and KOSDAQ, circuit breakers that halt trading for 20 minutes were also triggered. A level-1 circuit breaker is activated when the index falls 8% or more from the previous close; after trading resumed, both indexes widened their losses. It was the seventh KOSPI circuit breaker on record and the 11th for the KOSDAQ.
Earlier in early trading, at 9:06 a.m. and 10:31 a.m., sell-sidecars (temporary suspension of program sell quotes) were triggered on the KOSPI and KOSDAQ, respectively. A sidecar is triggered when KOSPI 200 futures rise or fall 5% or more from the previous close and the move lasts for one minute. For the KOSDAQ, it is triggered when KOSDAQ 150 futures fall 6% or more and, after the KOSDAQ 150 index falls 3% or more, the move lasts for one minute.
It was the first time in about four months that sell-sidecars were triggered simultaneously on the KOSPI and KOSDAQ, since Nov. 5 last year, when the market plunged amid a debate over excessive valuations in artificial intelligence (AI).
Noh Dong-gil, an analyst at Shinhan Investment & Securities, said, "Attempts at dip-buying came as geopolitical burdens remained," adding, "Korea's market fell more than other Asian markets due to pressure from the recent short-term surge and profit-taking sentiment."