[Opening Market] KOSPI Plummets Briefly to 6,400s Amid US Semiconductor Chill

On August 25, the KOSPI index experienced a sudden drop shortly after the opening due to a lack of confidence in semiconductor stocks following a weak performance in the US New York market overnight. The index opened at 6,535.93, falling 161.03 points (2.40%) from the previous day. Early in the trading session, a coordinated sell-off by foreign and institutional investors intensified the decline, pushing the KOSPI down to approximately 6,400 points.

By 10:00 a.m., the index had settled at 6,543.53, dropping 153.43 points (2.29%) from the prior day. The KOSDAQ index also witnessed weakness, starting at 806.93, down 6.40 points (0.79%) from the prior day, and subsequently falling to the 780 mark early in the session. Foreign and institutional investors dominated the selling pressure, with foreign investors netting a 553 billion won (about $400 million) loss by targeting large-cap semiconductor stocks.

Institutional investors contributed an additional 124.7 billion won in selling pressure. In contrast, retail investors made a net purchase of 666.5 billion won, absorbing the selling pressure. Major semiconductor companies, such as Samsung Electronics and SK hynix, were particularly hard hit, with their stock prices plummeting due to the US market's impact.

Other IT component-related stocks also faced declines, reflecting the broader weakness in the large-cap sector. LG Energy Solution, in the secondary battery sector, fell by about 10,000 won from the previous day, dropping 1.66% to 3.87%, as investors sought defensive stocks amid the overall market downturn. Although foreign net selling continued following the stock market's decline, the weakened dollar and increased dollar selling volume caused the won-dollar exchange rate to slightly dip, testing the 1,380 won support level.