The KOSPI index plunged for a second straight day, falling to the 7,200 level. After Samsung Electronics released its preliminary second-quarter results the previous day, the "semiconductor peak-out" narrative resurfaced and dented investor sentiment, triggering massive sell-offs. Sell-sidecars were activated simultaneously on both the main bourse and the KOSDAQ market.
On the 8th, the KOSPI index closed at 7,246.79, down 409.52 points (5.35%) from the previous session. It tumbled for the second day in a row after a 4.91% drop the day before. The index, which opened down more than 2%, briefly rebounded early in the session to reclaim the 7,790 level, but fell again as panic selling continued.
As the afternoon losses deepened, a sell-sidecar was triggered to temporarily halt program sell quotes.
A sell-sidecar was activated not only on the main bourse but also on the KOSDAQ market. The KOSDAQ index closed at 785.00, down 46.23 points (5.56%) from the previous session. Bio stocks including Alteogen, the secondary battery sector such as EcoPro BM, and materials, parts, and equipment names all fell sharply across the board.
Foreign investors turned net buyers for the first time in 14 sessions, but the buying was not aggressive. On the main bourse, they had a net buying advantage of about 400 billion won, while individuals and institutions each logged around 300 billion won in net selling.
Semiconductor stocks slumped sharply, dragging the index lower. Samsung Electronics plunged more than 6% to 270,000 won, and SK hynix also fell more than 5%. Although Samsung Electronics' preliminary results released the previous day exceeded securities firms' forecasts, they were not a large enough surprise to astonish investors, serving instead as a pretext for profit-taking, according to assessments.
Son In-jun, an analyst at 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 tumbled, U.S. tech shares also weakened overnight. Kang Jin-hyeok, an analyst at Shinhan Investment & Securities, said, "With semiconductor shares having swung sharply recently, fatigue has built up and selling pressure has grown," adding, "the rekindling of the Middle East conflict also weighed on the market."
International oil prices surged after reports the previous day that a Qatari vessel was hit in the Strait of Hormuz. According to local media, the ship is believed to have been struck by Iran.
Although stocks are plunging, experts say Samsung Electronics and SK hynix are expected to see further earnings improvement in the third quarter, and that semiconductor supply shortages are likely to persist for the time being. While investor sentiment has deteriorated sharply and share prices have slumped, considering the earnings uptrend, there is room for a rebound.