[Morning Market] KOSPI Threatens 5,300 Level Amid Tech Selloff

On October 23, the domestic KOSPI stock market experienced a severe decline, primarily driven by the downturn in U.S. tech and semiconductor sectors. The index opened at 5,403.17, falling 2.4% and plummeting to 5,305.98 (-4.12%) within just 10 minutes. Although the KOSPI had been hovering near the 5,500 level, it quickly dropped to the 5,300 mark. While it managed to recover some of its losses, the index remained volatile, hovering near the 5,400 level by 11 a.m., with a 2% drop rate as of that time.

The KOSDAQ index, which started at 748.32, fell 15.78 points (2.07%) and declined 4.09% to the 730 level before partially recovering. The decline was fueled by a fierce selling offensive from foreign and institutional investors, contributing to the overall downward pressure on the market. Domestic large-cap export stocks were also heavily impacted, freezing investor sentiment almost immediately after the U.S. tech and semiconductor sector corrections.

Foreign and institutional investors' selling dominance reached approximately 280 billion won ($211.2 million) in the KOSPI market, while institutional investors' mixed trend and defensive power weakened in the face of the overall program selling volume. Individual investors attempted to counteract the selling pressure by purchasing stocks at low prices, but their efforts were insufficient to stop the downward trend.

Among the top large-cap stocks, blue-chip companies like Samsung Electronics and SK hynix showed weakness, with the latter failing to recover from the AI credit anxiety and the correction of the U.S. semiconductor index. The electrical and electronic sectors, as well as automobile-related stocks, were generally sluggish, adding to the overall bearish sentiment in the market.