On the 5th, the KOSPI index plunged more than 5% and sank to the 8,100 level. The KOSDAQ index also fell more than 4% that day, dropping below the 1,000 level.
It is analyzed that the sharp drop in Broadcom in the United States the previous day, after missing earnings expectations, widened losses centered on domestic semiconductor-related stocks.
That day, the KOSPI index closed at 8,160.59, down 478.82 points (5.54%) from the previous session's closing price.
Amid strong foreign selling, a sell sidecar that suspends the effectiveness of program trade sell orders on the Korea Exchange was triggered in early trading. This was the 21st sidecar this year and the 10th sell sidecar. Losses then deepened and threatened the 8,000 level, but as individual buying increased, the market finished at the 8,100 level.
In the Korea Exchange that day, foreigners were net sellers of 4.4174 trillion won, and institutions also sold 1.2665 trillion won. Individuals net bought 5.3403 trillion won to defend the market, but it was not enough to prevent the index from falling.
The KOSDAQ also closed at 1,002.44, down 47.29 points (4.50%) from the previous session's closing price that day. As the decline widened to more than 4.77% in early trading, the 1,000 level was broken for the first time in about three months since Mar. 4. It then slightly trimmed losses and ended the session barely holding the 1,000 level.
In the KOSDAQ market, foreigners were net sellers of 257.9 billion won, while individuals and institutions were net buyers of 114.2 billion won and 148.1 billion won, respectively.
It is interpreted that investor sentiment in the domestic stock market weakened as most semiconductor stocks fell on the New York market the previous day.
When the earnings of U.S. semiconductor company Broadcom fell short of market expectations, the market corrected centered on semiconductor stocks. Broadcom shares fell 12.6% from the previous session's close, and major semiconductor stocks such as AMD, Micron, and Qualcomm also declined.
The three major New York indexes finished mixed the previous day. On the New York Stock Exchange, the Dow Jones Industrial Average rose 874.86 points (1.73%) from the previous session to close at 51,561.93.
The Standard & Poor's (S&P) 500 rose 30.63 points (0.41%) to close at 7,584.31. The Nasdaq fell 23.02 points (0.09%) to finish at 26,830.96.
Among large-cap stocks on the Korea Exchange, most tumbled sharply except for a few. Samsung Electronics and SK hynix closed down 6.40% and 9.92%, respectively, from the previous session's close.
Despite expectations following news of NVIDIA CEO Jensen Huang's visit to Korea that day, LG, NAVER, and Doosan Robotics also ended lower across the board.
In contrast, financial stocks such as KB Financial, Shinhan Financial Group, and Woori Financial Group closed higher after news that penalty surcharges on Hong Kong H-share index equity-linked securities (ELS) would be reduced. On news that foreign visitors led by Chinese travelers topped 2 million for the second straight month, consumer-related stocks such as Samyang Foods and Hyundai Department Store also finished higher.
In the Seoul foreign exchange market that day, the won-dollar rate closed at 1,539.1, up 9.4 won from the previous session.