Amid concerns about prolonged high interest rates from the United States and the added headwind of a breakdown in labor talks at Samsung Electronics, the KOSPI on the 20th barely clung to the 7,200 level. With risks mounting for the flagship semiconductor stock, foreigners sold for a 10th straight session, putting heavy pressure on the market.
The KOSPI closed at 7,208.95, down 0.86% (62.71 points) from the previous day.
The KOSPI opened at 7,324.52, up 52.86 points (0.73%), but quickly turned lower. It rebounded briefly in the morning, but after news around 11:30 a.m. that labor talks at Samsung Electronics had collapsed, losses deepened and the index slid below the 7,100 level intraday.
Foreigners dragged down the main bourse that day. Foreign investors dumped more than 2.8 trillion won, extending a 10-day selling streak. Individuals and institutions each net bought around 1.3 trillion won to try to stem the losses, but it was not enough.
A surge in U.S. bond yields also appeared to play a role. As inflation worries grew on the back of high oil prices, the 30-year U.S. Treasury yield at one point on the 19th (local time) rose to 5.197%. That is the highest in 19 years since 2007, just before the global financial crisis. The 10-year U.S. Treasury yield also climbed intraday to 4.687%, hitting a record high since January 2025. The won-dollar exchange rate also spiked to 1,510 won, spurring an exodus of foreign funds.
On the main bourse that day, only 94 stocks rose. By contrast, 815 declined.
Samsung Electronics, which had plunged more than 3% intraday right after the announcement of the breakdown in labor talks, drew a wave of bargain hunting in the afternoon as news broke that negotiations between labor and management would resume, dramatically reversing the slide to finish slightly higher.
Among sectors, shipbuilding and engine themes were strong on expectations of orders for artificial intelligence (AI) data centers. HD Hyundai Heavy Industries and Hanwha Engine closed higher. Samsung Electro-Mechanics, which signed a supply contract worth about 1.5 trillion won with a U.S. big tech corporation, also ended the session up.
At the same time, the KOSDAQ closed at 1,056.07, down 28.29 points (2.61%) from the previous day. Starting at 1,081.04, down 3.32 points (0.31%) from the prior session, the KOSDAQ widened losses during the day.
On the KOSDAQ market, foreigners were net buyers of 200.1 billion won, while individuals and institutions were net sellers of 66.9 billion won and 121.5 billion won, respectively.
Kang Jin-hyeok, an analyst at Shinhan Investment & Securities, said, "With worries about the macro environment growing, most sectors showed weakness in tandem, except for materials, components and equipment."