[Closing Market] KOSPI Barely Holds 6,700 As Semiconductors Tumble
On Aug. 28, the domestic stock market closed with a massive decline, failing to withstand the bombardment of simultaneous selling by foreign and institutional investors.Amid heightened wait-and-see sentiment ahead of the Jackson Hole Economic Symposium, considered the biggest watershed for global fi
On August 28, the South Korean KOSPI stock market closed with a significant drop, unable to withstand mass selling from foreign and institutional investors. Amid uncertainty surrounding the Jackson Hole Economic Symposium and the U.S. Federal Reserve's monetary policy announcement, foreign investors targeted semiconductor stocks, particularly Samsung Electronics and SK hynix.
This led to the KOSPI index falling to just 6,788.88, a 1.79% decrease from the previous day's close. Although the market started strong, it turned downward as foreign investors switched to net selling, and institutions increased their selling volumes. In contrast, foreign exchange markets saw a drop in the won-dollar exchange rate, reflecting global weakness in the U.S. dollar.
Retail investors, despite their efforts, struggled to prevent further decline, as foreign and institutional selling volumes were overwhelming. The simultaneous drop in Samsung Electronics and SK hynix, the top two semiconductor stocks, was a decisive factor in the market's downturn. The foreign exchange market closed at 1,372.5 won, which was lower than the previous week's closing price due to global dollar weakness.
Experts believe this market decline is a short-term phase after major events, and as the monetary policy situation becomes clearer, the exchange rate is expected to stabilize.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
