South Korea’s Kospi Tumbles 5% After 2-Day Rally, Angry Retail Investors Vow Not to Invest Again
Samsung Electronics and SK hynix fell 6.3% and 10.37%, deepening worries about chip earnings and AI spending, analysts said.
- On Thursday, the benchmark KOSPI plunged 301.88 points, or 4.58 percent, to 6,296.38 as major semiconductor stocks led a broad selloff, prompting the Korea Exchange to suspend program selling for five minutes under its sidecar mechanism.
- South Korea's market rout threatens a government-backed effort to lure retail 'ant' investors home, as traders shifted capital toward U.S. equities with buying reaching $4.6 billion in July alone.
- Chipmakers Samsung Electronics and SK Hynix drove 76% of the KOSPI's 2,257.8 trillion won wipeout in market value, while deposits in domestic stock trading accounts fell to 102.8 trillion won as of Monday.
- Kwon Ah-min, an FX analyst at NH Investment Securities, noted that retail investors are 'tired of the domestic market,' while Bank of America analysts warned that domestic retail outflows could re-emerge.
- Kim Jae-seung, an analyst at Hyundai Motor Securities, expressed skepticism regarding the KOSPI's upward momentum, citing concerns about chip earnings sustainability and intensifying competition from China's semiconductor industry.
10 Articles
10 Articles
Analysis-Korean ‘ants’ swarm back to Wall Street as KOSPI rout dents homecoming drive
By Yena Park and Jihoon Lee SEOUL, Aug 7 (Reuters) - South Korea's stock market rout is unravelling a government-backed effort to lure retail 'ant' investors home, driving the biggest rush into the U.S. market in six months and reviving a long-standing...
(Seoul = Yonhap News) Reporter Hwang Cheol-hwan = On the 7th, whether the KOSPI will attempt a rebound driven by bargain buying following yesterday's sharp decline, or undergo another correction due to the weakness in the New York stock market overnight...
Market Whiplash Tests Korea’s Big Promise
South Korea’s stock surge that helped elect President Lee Jae Myung has slammed into violent swings, testing the pledge to end the “Korea discount.” Story Snapshot Lee tied his campaign to a Kospi 5,000 goal and reform push Markets jumped on his reform vows and at inauguration Semiconductor strength boosted gains but also raised risk...
The morning of this Thursday was again marked by the strong instability of the Seoul Stock Exchange, where the shares of SK Hynix fell more than 10% and had a strong impact on the performance of the Kospi index, which declined 4.85%. Already in the field of commodities, oil prices are valued, but without so much strength, which leaves interest on the Treasurys only with high bias along the curve. In this context, domestic markets are dawning att…
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