KOSPI plunges 8.29%, the second-largest drop this year
Analyzing the KOSPI plunge, including circuit breaker activation and the spread of foreign selling Check the key causes and outlook for a market shaken by U.S. tech stocks, exchange rates, and interest rate variables
The domestic stock market fell sharply on the 8th, with both the KOSPI and KOSDAQ plunging. The KOSPI closed at 7,484.41, down 8.29% from the previous trading day, while the KOSDAQ ended trading at 911.39, down 9.08%.
As the sharp decline continued, circuit breakers and sellside sidecars were triggered in the securities market and the KOSDAQ market. Trading was temporarily suspended after the KOSPI remained down more than 8% for a certain period of time, but it failed to prevent the losses from widening.
The market analyzed that a combination of factors had an impact, including weakness in U.S. tech stocks, concerns over interest rate hikes, escalating tensions in the Middle East, and a sharp rise in the wondollar exchange rate. Foreign investors continued net selling for 21 consecutive trading days, and major stocks by market capitalization, including Samsung Electronics and SK Hynix, also fell sharply.