The home inventory market plunged under the three,800 stage on Nov. 5 as a consequence of heavy overseas promoting, then recovered above the 4,000 mark because of particular person investor shopping for. As foreigners engaged in profit-taking amid overvaluation considerations for large-cap shares together with Samsung Electronics (005930) and SK Hynix (000660), particular person buyers absorbed the promoting strain and considerably decreased the decline. SK Hynix, which fell as a lot as 8% throughout morning buying and selling, recovered to round -1% by market shut, making a rollercoaster market session.
Based on Korea Change, the KOSPI index closed at 4004.42, down 117.32 factors (2.85%) from the earlier buying and selling day. The index opened at 4055.47, down 66.27 factors (1.61%) from the earlier session, falling under the 4,000 stage and persevering with to say no all through the morning to slide under the three,900 stage. At one level through the session, it confirmed a decline of over 6%, plummeting to 3867.81. This was the most important decline because the “Black Monday” incident on Aug. 5 final yr (-8.77%). Together with the spot index, the KOSPI 200 futures index additionally plunged sharply, prompting the alternate to activate a sell-side circuit breaker at round 9:46:15 AM, suspending program promote orders for 5 minutes.
International buyers dumped 2.518 trillion received price of securities within the inventory market, intensifying downward strain on KOSPI. This was the most important promoting spree since Aug. 13, 2021 (2.699 trillion received). International buyers’ web promoting, mixed with the day prior to this’s 2.223 trillion received, simply exceeded 4.700 trillion received in simply two days. In distinction, particular person buyers bought 2.210 trillion received price of shares on today, following the day prior to this’s 2.701 trillion received. Consequently, the KOSPI index, which had plummeted as a consequence of overseas promoting, jumped again above the 4,000 stage within the afternoon.
Due to particular person shopping for, Samsung Electronics, which had fallen as a lot as 7% through the morning, closed at -4.10%, defending the 100,000 received stage. SK Hynix additionally recovered from an 8% plunge to -1.19% at closing, growing inventory value volatility. Moreover, Doosan Enerbility (034020) decreased its decline from round -11% to -6.59%, Hanwha Aerospace (012450) from round -8% to -5.94%, HD Hyundai Heavy Industries (329180) from round -8% to -6.88%, and LG Vitality Resolution (373220) from round -4% to -1.90%.
The KOSDAQ index additionally plummeted greater than 5% through the session, falling to the 870 stage earlier than recovering above 900 to shut buying and selling. The index closed at 901.89, down 2.66% from the earlier session. KOSDAQ additionally confirmed a transparent distinction between overseas web promoting (599.7 billion received) versus particular person web shopping for (564.7 billion received).
As expectations for revenue momentum (upward potential) stay unchanged for large-cap shares in semiconductors, nuclear energy, protection, and shipbuilding sectors which have led the current bull market, particular person buyers seem to have considered the day’s sharp decline as a chance for low-price shopping for. Lee Kyung-min, a researcher at Daishin Securities, analyzed, “KOSPI has continued its record-high rally lately with out value changes, intensifying profit-taking strain,” including, “International buyers shifted to a promoting bias within the futures market from November 2 when KOSPI exceeded 3,500, and within the spot market from Oct. 20 when it surpassed 3,800, reaching a peak in promoting strain yesterday and at this time.”
He continued, “From a mid-to-long-term perspective, the momentum (upward potential) and fundamentals (fundamental energy) of synthetic intelligence (AI) and know-how shares don’t seem to have been damaged, so this sharp decline is judged to be a part of short-term overheating decision following current surges, somewhat than a pattern reversal.”
