The KOSPI index plunged for a second straight day, slipping to the 7,200 level. After Samsung Electronics released its preliminary second-quarter results the previous day, the "semiconductor peak theory" resurfaced and dampened investor sentiment, triggering massive dumping. Sell-sidecars were simultaneously activated on the main board and the KOSDAQ.
On the 8th, the KOSPI index finished at 7,246.79, down 409.52 points (5.35%) from the previous session. It plunged for a second day after falling 4.91% the day before. The index opened more than 2% lower but rebounded early in the session to reclaim the 7,790 level before sliding again as dumping persisted.
As the afternoon losses deepened, a sell-sidecar that temporarily halts program sell orders was triggered.
A sell-sidecar was also triggered on the KOSDAQ, not just the main board. The KOSDAQ index closed at 785.00, down 46.23 points (5.56%) from the previous session. Bio stocks including Alteogen, secondary battery names such as EcoPro BM, and materials, parts and equipment stocks all tumbled sharply in unison.
Foreign investors were net buyers for the first time in 14 sessions, but the buying was not aggressive. On the main board, they held a buying advantage of about 400 billion won, while individuals and institutions each were net sellers of around 300 billion won.
Semiconductor stocks fell sharply, dragging down the index. Samsung Electronics plunged more than 6% to 270,000 won, and SK hynix also dropped more than 5%. Although the preliminary results Samsung Electronics released the previous day exceeded securities firms' projections, they were not a sufficiently large positive surprise to wow investors, leading many to take profits.
Son In-jun of Eugene Investment & Securities said, "Samsung Electronics' preliminary results proved strong fundamentals, but they were not enough to quell recent peak-out concerns," adding, "the market's focus is shifting beyond a short-term earnings surprise to the long-term sustainability of results."
As domestic semiconductor stocks slumped, U.S. tech shares were also weak overnight. Kang Jin-hyeok of Shinhan Investment & Securities said, "Amid recent sharp swings in semiconductor stocks, fatigue has increased and the urge to sell grew," adding, "the rekindling of Middle East tensions also weighed on the market."
International oil prices surged after reports that a Qatari vessel was struck in the Strait of Hormuz the previous day. According to local media, the vessel is presumed to have been hit by Iran.
Despite the market plunge, experts say results for Samsung Electronics and SK hynix are expected to improve further in the third quarter, and that semiconductor supply shortages will persist for the time being. While investor sentiment has deteriorated rapidly and share prices have slid, the improvement in results suggests room for a rebound.