On the 4th, the KOSPI index plunged more than 12%, helplessly losing even the 5,100 level. This is an unprecedented situation that surpasses the previous record for the biggest decline set during the Sept. 11, 2001, terror attacks.
As U.S. and Israeli strikes on Iran spread fear of a full-scale war, the market fell into an uncontrollable state. A sell-sidecar and circuit breakers were triggered one after another on both the KOSPI and KOSDAQ, but they were far from enough to stem the flood of panic selling.
The KOSPI index closed at 5,093.54, down 698.37 points (12.06%) from the previous trading day. It is the first time in 14 trading days that the KOSPI has fallen below the 5,100 level, since on the 6th of last month (5,089.14). It slid to as low as 5,059.45 intraday.
The decline was far steeper than major Asian markets, with Japan's Nikkei 225 down in the 3% range and Hong Kong's Hang Seng down in the 2% range.
Just 2 trading days earlier, on the 27th of last month, the KOSPI stood at 6,244.13 points, but it evaporated by 1,150 points over two days. Of all KOSPI listings on the day, 911 fell, one was flat, and only 13 advanced.
In 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 large caps, Samsung Electronics and SK hynix fell in the 11% and 9% ranges.
Other top market-cap names also tumbled 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 index also plunged 159.26 points (14.00%) from the previous trading day to finish at 978.44. On the KOSDAQ that day, 1,708 stocks closed lower. The number of flat (19) and higher (25) stocks did not even reach a total of 50.
Individuals dumped 1.2023 trillion won worth of shares, dragging down the index. Foreigners and institutions were net buyers of 1.1716 trillion won and 27.8 billion won, respectively.
Top KOSDAQ market-cap stocks were also deep in the red. EcoPro, the KOSDAQ bellwether, plunged more than 18%, while 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 across the board.
Amid the intraday plunge in the KOSPI and KOSDAQ, circuit breakers that halt trading for 20 minutes were triggered. A level-1 circuit breaker is activated when the closing price from the previous day drops by 8% or more; after trading resumed, both indexes extended their losses. It was the seventh circuit breaker ever for the KOSPI 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 remain there for one minute. For the KOSDAQ, it is triggered when KOSDAQ 150 futures fall 6% or more and the KOSDAQ 150 index falls 3% or more and both conditions persist 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 controversy over inflated valuations in artificial intelligence (AI) sent the market tumbling.
Noh Dong-gil, an analyst at Shinhan Investment & Securities, said, "Attempts at dip-buying have emerged, but geopolitical burdens have not eased," adding, "Korea's stock market fell more than other Asian markets due to pressure from the recent short-term surge and profit-taking sentiment."