[Closing Market] KOSPI Barely Holds 5,000 After Tech Rout
OOn the afternoon of Nov. 6, the South Korean stock market faced its worst ‘Black Friday’ in November in the aftermath of a massive tech stock crash that swept over from the New York stock market. As the U.S. Philadelphia Semiconductor Index plummeted by over 12% overnight and concerns over regulati
On November 6, South Korea's KOSPI stock market faced its most severe "Black Friday" in November, following a significant crash in tech stocks from the New York market. As the U.S. Philadelphia Semiconductor Index dropped over 12% overnight, fears over regulations for AI data centers intensified, sparking a panic selling frenzy in the domestic financial market.
The KOSPI opened at 5,263.26 points, down 120.54 points (-2.24%) from the previous day. However, the decline quickly accelerated, with the index plummeting to 4,911.28 points (-8.78%) and eventually closing at 5,059.69 points (-6.02%) due to a combination of foreign and domestic investors' actions. The KOSDAQ index also experienced a sharp decline, closing at 629.17 points, down 7.26% from the previous day.
Over the past six consecutive trading days, foreign investors had sold a total of 11.9949 trillion won worth of stocks, primarily targeting top-tier semiconductor and IT companies, such as SK hynix and Samsung Electronics. Despite some buying by institutional and individual investors, the massive outflow of foreign capital proved too strong for the market to defend, resulting in a combined market capitalization loss of over 2,000 trillion won in just half a year.
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