[Closing Market] KOSPI Falls Below 7,000 Amid Heavy Foreign Selling
On Sept. 11, the domestic stock market was severely shaken as it faced a triad of headwinds: rising U.S. Treasury yields, oil price instability, and a plunge in technology stocks on the New York stock market. The KOSPI index, pushed down by a strong combined selling trend from foreign and institutio
On September 11, South Korea's stock market faced significant challenges as it grappled with a combination of rising U.S. Treasury yields, oil price instability, and a sharp decline in technology stocks on the New York stock market. The KOSPI index, the primary indicator of the domestic market, plummeted below the 7,000 mark by the close of trading, settling at 6,909.91 points, a decline of 124.01 points or 1.76% from the prior trading day.
The market's volatility was evident as it started the day lower due to the impact of soaring U.S. Treasury yields and weak technology stocks before finding some respite during the trading day. Concurrently, the KOSDAQ index, representing smaller companies, also faced a steep decline, closing at 820.64 points, down 1.95% from the previous session.
The primary catalyst for this market turbulence was the massive selling pressure from both foreign and institutional investors. Foreign entities and institutional investors collectively dumped billions of won into the market, exacerbating the downward momentum of the KOSPI index. Despite a partial recovery in the afternoon driven by individual investors, the index failed to sustain a rebound, remaining entrenched in a bearish trend.
Foreigners and institutions recorded a net selling dominance of 1.64 trillion won, with individual investors, in contrast, netted a buying amount of 2.25 trillion won, absorbing the majority of the selling pressure and averting a deeper market plunge. The semiconductor sector, particularly Samsung Electronics and SK hynix, bore the brunt of the market sell-off due to adverse market conditions in the U.S. New York stock market.
These two semiconductor giants saw their stock prices plummet, with Samsung Electronics falling to 256,500 won and SK hynix dropping to 1,812,000 won, reflecting the broader market sentiment against technology stocks. The exchange rate of the won against the dollar also fluctuated, strengthening as the dollar gained traction due to rising U.S. Treasury yields and volatile oil prices.
This strengthening of the dollar further fueled the market's downward spiral as foreign investors continued their selling spree. Experts are closely monitoring the situation, anticipating that market volatility will persist until issues related to U.S. monetary policy and fluctuating oil prices are addressed.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
