The KOSPI index was threatened down to the 8,000 level in early trading amid heavy foreign selling, but it is rebounding to reclaim the 8,300 level as retail buying grows again. In early trading, a sell-sidecar was triggered on the Korea Exchange, halting the effectiveness of program trading sell orders.
As of 11:26 a.m. on the 5th, the KOSPI index is down 261.57 points (3.03%) from the previous session at 8,377.84.
The KOSPI index opened the day at 8,323.20, down 316.21 points (3.66%) from the previous session, and the decline deepened. At 9:08 a.m., KOSPI200 futures (nearest-month contract) fell more than 5% for over a minute, triggering a sell-sidecar.
In the main board, foreigners are net sellers of more than 2.8 trillion won, while individuals are net buyers of 2.8 trillion won, helping defend the KOSPI index from further losses. Institutions are net sellers of more than 200 billion won.
KOSDAQ also opened lower and, during the session, the 1,000 level briefly broke for the first time in about three months. KOSDAQ started the day at 1,035.22, down 14.51 points (1.38%) from the previous session.
At 9:52 a.m., the KOSDAQ index fell 4.77% from the previous close to 999.62, breaking below 1,000. It is the first time in about three months that the KOSDAQ index has fallen below 1,000 since Mar. 4. It has since pared losses and is fluctuating around 1,000.
In the KOSDAQ market, foreigners are also net sellers of 250 billion won. Institutions are net buyers of 190 billion won and individuals 60 billion won, offsetting the selling.
It is believed that domestic investor sentiment weakened after most semiconductor stocks fell in New York trading the previous day.
As Broadcom's earnings missed market expectations, semiconductor stocks underwent a correction, which appears to have weighed on the market here.
The three major New York indexes ended mixed the previous day. On the New York Stock Exchange, the Dow Jones Industrial Average rose 874.86 points (1.73%) to finish at 51,561.93.
The Standard & Poor's (S&P) 500 index rose 30.63 points (0.41%) to close at 7,584.31. The Nasdaq fell 23.02 points (0.09%) to end at 26,830.96.
On the main board, most of the top market-cap stocks are sharply lower, except for a few names. Samsung Electronics and SK hynix are down in the 3%–5% range from the previous session.
By contrast, financials such as KB Financial, Shinhan Financial Group, and Woori Financial Group are stronger after news that penalty surcharges related to Hong Kong H-index equity-linked securities (ELS) will be reduced.