[Closing Market] KOSPI Reverses Sharply After 7,200 Surge
On Aug. 18, the domestic stock market staged a strong rally, breaking through the 7,200 mark early in the session driven by the surge of large-cap semiconductor stocks, but closed lower as foreign investors reduced their buying and institutions poured out massive profit-taking volumes during intrada
On August 18, the KOSPI stock index experienced a dramatic reversal after surging past 7,200 points early in the day, driven by large-cap semiconductor stocks. However, the market closed lower as foreign investors sold off and institutions took massive profit-taking positions during intraday trading. This slump was attributed to intensifying market sentiment, fueled by rising US long-term government bond yields and heightened geopolitical tensions between the US and Iran.
The KOSPI index closed at 6,869.83, down 108.11 points (1.55%) from the previous trading day. It rallied to a high of 7,216.62 (+3.42%) at one point during the day, buoyed by foreign investors and leading semiconductor stocks. Foreign investors, who had been net buyers for five consecutive trading days, returned most of their gains during the late trading session, ending the day with a net purchase of around 86 billion won.
Conversely, institutional investors led the decline with a net selling of 1.1927 trillion won, primarily driven by funds and financial investments.
The KOSDAQ index also suffered a sharp decline, closing at 834.20, down 30.45 points (3.52%) from the prior trading day. Both KOSPI and KOSDAQ witnessed large-cap tech stocks, such as Samsung Electronics and SK hynix, showing volatile performance, largely erasing their early-session gains. Top market capitalization stocks experienced high volatility, with Samsung Electronics closing 2.19% lower and SK hynix down 1.03%.
In the foreign exchange market, the won/dollar exchange rate ended the day at 1411.8 won, down 1.2 won from the previous session. The rate hit its lowest level in 10 months, falling below 1410 won due to foreign investors' net buying of domestic stocks early in the session. However, bargain hunting and the weak yen helped narrow the decline.
Concerns about a potential US economic slowdown, coupled with the Federal Reserve keeping interest rates frozen, weighed on the exchange rate. US government bond yields climbed to 5.304%, the highest in 19 years and 2 months, further pressuring the won/dollar exchange rate.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
