KOSPI and KOSDAQ Plunge Together… 'Black Tuesday' as Semiconductor Stocks Weaken
A sharp drop in the KOSPI, along with weakness in semiconductor stocks and the shock of foreign selling, shook the stock market. From sidecars to circuit breakers, check the causes of this slump and the performance variables ahead.
On the 28th, the KOSPI and KOSDAQ fell sharply, sending the domestic stock market into a sudden chill. The KOSPI dropped more than 10%, barely closing above the 6,000 level, while the KOSDAQ also fell by more than 7%.
This plunge is seen as the result of growing caution toward domestic semiconductor stocks, fueled by the successful listing of China’s largest chipmaker and news of its technological developments, along with weakness in the semiconductor sector across U.S. and Asian markets. During the session, sellside sidecars and circuit breakers were triggered one after another.
Foreign investors recorded heavy net selling in the KOSPI on the day, and Samsung Electronics and SK Hynix both posted doubledigit declines. The market is paying close attention to how earnings reports from Big Tech and domestic semiconductor companies scheduled for this week will affect investor sentiment going forward.