South Korea's KOSPI stocks index fell 2.47% to 6639.08 as of 9:06 AM on the 14th, breaching the 6700 level according to Korea Exchange data. Individual investors led the decline by selling 513.3 billion won worth of stocks, overwhelming foreign and institutional buying of 77 billion and 425.3 billion won respectively. The drop followed overnight declines in US markets driven by weakened sentiment in global semiconductor stocks, surging international oil prices after US President Donald Trump's remarks on Strait of Hormuz transit fees, and hawkish comments from Federal Reserve officials.
Individual Investors Sell 513.3 Billion Won as KOSPI Breaches 6700
The KOSPI fell 167.85 points from the previous trading day to 6639.08 as of 9:06 AM on the 14th. The index dropped to the 6600 level during trading as investor sentiment deteriorated sharply after the 6700 level collapsed.
By investor type, foreigners and institutions net purchased 77 billion won and 425.3 billion won respectively, but individual investors net sold 513.3 billion won, driving the index decline.
Samsung Electronics and SK Hynix Lead Declines Among Top Stocks
Most large-cap stocks showed weakness. Samsung Electronics fell 1.57%, SK Hynix fell 4.50%, SK Square fell 3.45%, Samsung Electronics preferred shares fell 3.11%, Samsung Electro-Mechanics fell 4.73%, Hyundai Motor fell 6.31%, LG Energy Solution fell 2.13%, Samsung Biologics fell 2.43%, and Samsung Life Insurance fell 7.06%. Only KB Financial rose 0.48%.
KOSDAQ Falls 2.48% to 779.53
The KOSDAQ index also declined. At the same time, the KOSDAQ fell 2.48% (19.83 points) from the previous trading day to 779.53.
In the KOSDAQ market, foreigners net sold 35.1 billion won while individuals and institutions net purchased 7.9 billion won and 27.1 billion won respectively.
Most large-cap stocks fell. Alteogen fell 12.95%, EcoPro BM fell 3.09%, EcoPro fell 4.19%, Rainbow Robotics fell 4.22%, Kolon TissueGene fell 7.05%, Wonik IPS fell 6.73%, PSK fell 0.27%, and EO Technics fell 0.42%. Jusung Engineering rose 1.37% and Lino Industrial rose 0.41%.
In the Seoul foreign exchange market, the won-dollar exchange rate stood at 1498.5 won as of 9:00 AM, moving near the 1500 won level.
Kiwoom Securities Analyst Identifies 6500 as Key Support Level
Han Ji-young, a researcher at Kiwoom Securities, stated "the key issue in the current market is gauging the extent of additional decline and the timing of a reversal" and "first, whether the KOSPI's 120-day moving average at 6500 holds is important."
Han added "a nearly 20% plunge in 14 trading days since July is the steepest adjustment since the financial crisis" and "the forward price-to-earnings ratio has also fallen to financial crisis lows, so it is necessary to consider the possibility of entering a bottom in terms of valuation."
Han stated "going forward, the US Consumer Price Index, President Trump's actions related to the Middle East, and earnings announcements from ASML and TSMC will be key variables for sentiment recovery" and "for semiconductor stocks, position liquidation including leverage has largely proceeded, so there is also the possibility of stimulating re-entry if earnings meet expectations."
FAQ
What happened to South Korean stocks on the 14th?
The KOSPI fell 2.47% to 6639.08 as of 9:06 AM on the 14th, breaching the 6700 level. Individual investors net sold 513.3 billion won while foreigners and institutions net purchased 77 billion and 425.3 billion won respectively.
Why did KOSPI stocks decline?
The drop followed overnight declines in US markets driven by weakened sentiment in global semiconductor stocks, surging international oil prices after US President Donald Trump's remarks on Strait of Hormuz transit fees, and hawkish comments from Federal Reserve officials.
What support level did Kiwoom Securities identify for KOSPI stocks?
Han Ji-young, a researcher at Kiwoom Securities, stated that the KOSPI's 120-day moving average at 6500 is an important support level to watch.
