[Closing Market] KOSPI Plunges 5.8%, Retreating to 6,470 Level
On Aug. 19, the domestic stock market closed, plummeting nearly 6%, driven by the overlapping bad news of a sharp decline in U.S. semiconductor technology stocks and a surge in long-term government bond yields in major countries.On this day, the KOSPI index opened at 6,531.00, down 338.83 points (4.
On August 19, the KOSPI stock market index experienced a dramatic 5.8% drop, falling to the 6,470 level. The market began the day at 6,531.00, a decline of 338.83 points (4.93%) from the prior trading session. Early morning selling pressure escalated quickly, with foreign investors and institutions selling off large amounts of stocks, particularly in the semiconductor sector. The KOSPI index saw its lowest point at 6,400.81 intraday before a slight rebound before the close.
The index's decline was primarily driven by the simultaneous drops in semiconductor giants Micron and Intel, as well as the Philadelphia Semiconductor Index's 4.98% plunge. Foreign and institutional investors collectively dumped 4.6 trillion won worth of stocks, while domestic investors tried to defend their positions by purchasing 4.6368 trillion won worth of shares.
Despite this, the imbalance was overwhelming, with foreign investors alone selling 3.4883 trillion won worth of stocks. Major semiconductor stocks like Samsung Electronics and SK hynix saw the sharpest drops, with Samsung Electronics falling 7.82% and SK hynix falling 9.75%.
Foreign exchange markets also reacted to the market crash, with the won/dollar exchange rate closing at 1,397.7 won, down 14.1 won from the previous day. Market experts attributed the sharp decline to concerns about a technology stock bubble in the U.S. and a surge in overseas bond yields. They suggested that foreigners' decision to sell nearly 3.5 trillion won in KOSPI stocks may signal a global portfolio adjustment, rather than just short-term profit-taking.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
