The KOSPI index plunged more than 4% on the morning of the 23rd, falling below the 8,800 level. Foreign investors and institutions appear to be pushing the index lower as they sell 2 trillion won and 1 trillion won, respectively.
As of 11:17 a.m. that day, the KOSPI index was at 8,727.33, down 387.22 points (4.25%) from the previous trading day. After opening at 9,083.54, the KOSPI briefly turned higher before giving up the 9,000 level.
The main board is being dragged down by foreign investors and institutions. Foreign investors have a net sell of 2.3676 trillion won and institutions 1.0821 trillion won, while individuals alone are net buying 3.4641 trillion won.
Eight of the top 10 market-cap stocks on the main board are falling. Samsung Electronics and SK hynix are down in the 5% range, and Samsung Electro-Mechanics, Hyundai Motor, LG Energy Solution, Samsung C&T, and HD Hyundai Heavy Industries are also lower. Only SK Square and Samsung Life Insurance are rising.
At the same time, the KOSDAQ index was down 48.99 points (5.06%) at 919.41.
On the KOSDAQ market, individuals and foreign investors are net selling 39.6 billion won and 52.6 billion won, respectively, while only institutions are net buying 91.1 billion won.
Top market-cap stocks on the KOSDAQ are all falling. In particular, Rainbow Robotics is down in the 9% range, and Alteogen, EcoPro BM, EcoPro, Jusung Engineering, Kolon TissueGene, Wonik IPS, LEENO Industrial, HLB, and EO Technics are also declining.
Han Ji-young, a Kiwoom Securities researcher, said, "With downside factors such as weak U.S. big tech share prices and the burden of market interest rates mixed with upside factors such as strength in the Philadelphia Semiconductor Index and lower oil prices, the KOSPI index will open slightly higher, but additional intraday upside pressure will be limited," adding, "Volatility in flows is expected to widen due to the battle for the No. 1 market cap."
In particular, the researcher noted about SK hynix surpassing Samsung Electronics in market cap the previous day, "The battle for the No. 1 market cap itself is an interesting event, but some may worry that the market top could be near," explaining, "That is because the case of Cisco rising to No. 1 in market cap during the dot-com bubble was a signal of the bubble's collapse."