South Korean stock market experiences' Black Wednesday ', KO

Seoul, July 8th (Xinhua) - The Korea Composite Index of Stock Prices (KOSPI) closed down more than 5% on the 8th, with closing prices falling for three consecutive trading days.

 

KOSPI closed at 7246.79 points that day, a decrease of 5.35% from the previous trading day. The Korean Stock Exchange once implemented a "temporary suspension" measure. The KOSDAQ index, also known as the "Korean version of NASDAQ," came under pressure simultaneously, falling below 800 points during trading and closing down 5.56%, marking the first time in nearly 10 months that the index has fallen below 800 points during trading. The Korean Stock Exchange also implemented a "temporary suspension" measure on the same day.

 

According to Yonhap News Agency, heavyweight stocks in the South Korean stock market generally weakened on that day, with Samsung Electronics and SK Hynix experiencing intraday declines of over 6% and 3% respectively, dragging down the overall semiconductor sector. Some analysts believe that the overnight decline in US technology stocks and semiconductor sectors has intensified market concerns about a slowdown in global artificial intelligence investment and a peak in the semiconductor industry. At the same time, the escalation of the situation in the Middle East has boosted risk aversion and further undermined investor confidence.

 

In addition, South Korean securities practitioners believe that the stock market experienced a "Black Wednesday" on that day, which was also related to the high weight of the semiconductor sector in the South Korean market and the amplification of market volatility by single stock leveraged open-end index funds (ETFs). As a result, the market exhibited trading characteristics of selling at high prices when the index rebounded and panic selling when it fell.

 

The South Korean government stated on the same day that it will closely monitor the recent fluctuations in the capital market, strengthen market risk monitoring and departmental coordination, and take timely measures when necessary to maintain the smooth operation of the financial market. (End)

 

(Editor in charge: Ma Changyan)