Korean stocks plunged at the opening on the 28th, with the KOSPI index dropping over 5% and falling below the 6,400 level shortly after the market opened. At 9:04 AM, the KOSPI stood at 6,390.68, down 365.07 points (5.40%) from the previous trading day, after opening at 6,400.27, down 355.48 points (5.26%). The sharp decline triggered a sell-side circuit breaker immediately after the opening. The drop followed overnight concerns in US markets about potential disruption to the current memory semiconductor oligopoly after Chinese semiconductor company ChangXin Memory Technologies (CXMT) listed on the previous day, sending major semiconductor stocks including NVIDIA down 4.99% and dragging the Philadelphia Semiconductor Index down 2.23%.
KOSPI Triggers Sell-Side Circuit Breaker After Opening
The KOSPI index opened at 6,400.27 on the 28th, down 355.48 points (5.26%) from the previous trading day. The sell-side circuit breaker was triggered shortly after the market opened. At 9:04 AM, the index stood at 6,390.68, representing a decline of 365.07 points (5.40%). The KOSDAQ index also fell, opening at 742.13, down 22.73 points (2.97%), and standing at 738.15 at the same time, down 26.71 points (3.49%).
Samsung Electronics and SK Hynix Lead Declines
Nine of the top 10 stocks by market capitalization on the main board declined. Samsung Electronics fell 6% while SK Hynix dropped 8%. SK Square, Samsung Electro-Mechanics, Hyundai Motor, LG Energy Solution, KB Financial, and Samsung Life Insurance also declined. Samsung Biologics was the only stock among the top 10 to rise. On the KOSDAQ market, Alteogen was the sole gainer among top market cap stocks, while EcoPro, EcoPro BM, Rainbow Robotics, Jusung Engineering, Leeno Industrial, Wonik IPS, HLB, ABL Bio, and Pharma Research declined.
Foreigners and Institutions Net Sell While Individuals Buy
On the main board, individual investors net purchased 434.8 billion won, while foreigners and institutions net sold 369.8 billion won and 62.7 billion won respectively. In the KOSDAQ market, individuals bought 11.6 billion won, while foreigners and institutions net sold 2.2 billion won and 9 billion won respectively.
US Semiconductor Sector Concerns Follow CXMT Listing
US major indices closed mixed overnight. The Dow Jones Industrial Average rose 262.83 points (0.51%) to 52,210.08, the S&P 500 gained 1.20 points (0.02%) to 7,413.18, while the Nasdaq Composite fell 43.74 points (0.18%) to 24,932.08. The Philadelphia Semiconductor Index dropped 2.23%. NVIDIA fell 4.99%, while Micron, SanDisk, and AMD also declined. SK Hynix's American Depositary Receipt (ADR) fell over 7%, falling below its IPO price. The semiconductor sector decline followed the listing of Chinese semiconductor company ChangXin Memory Technologies (CXMT) on the previous day, raising concerns about potential disruption to the current memory semiconductor oligopoly.
FAQ
Q: What caused Korean stocks to drop over 5% at the opening on the 28th?
A: The KOSPI fell 5.40% to 6,390.68 at 9:04 AM on the 28th following overnight concerns in US markets about potential disruption to the memory semiconductor oligopoly after Chinese company CXMT listed on the previous day. This triggered declines in major US semiconductor stocks including NVIDIA, which fell 4.99%.
Q: Which major Korean stocks declined the most on the 28th?
A: SK Hynix led declines with an 8% drop, while Samsung Electronics fell 6%. SK Hynix's US ADR also fell over 7%, dropping below its IPO price. Nine of the top 10 stocks by market capitalization on the main board declined, with only Samsung Biologics rising.
Q: How did different investor groups trade on the 28th?
A: Individual investors net purchased 434.8 billion won on the main board, while foreigners net sold 369.8 billion won and institutions net sold 62.7 billion won. On the KOSDAQ market, individuals bought 11.6 billion won while foreigners and institutions net sold 2.2 billion won and 9 billion won respectively.
