Kospi plunges 5% on US chip stock rout
South Korea's Kospi index dropped over 5% in early trading after semiconductor stocks fell globally, led by Samsung Electronics and SK hynix, following Broadcom's disappointing earnings and outlook on Wall Street. Foreign and institutional investors sold heavily, while retail investors were the only net buyers amid volatility that triggered a temporary trading halt.
South Korea’s Kospi index plunged more than 5% in early trading on Friday, mirroring a sharp selloff in global semiconductor stocks. The index opened at 8,323.2, down 3.66%, before falling further to 8,190.25, a 5.2% decline, pushing it below 8,100. A sell-side sidecar halted program sell orders for five minutes at 9:08 a.m. to stabilize volatility. Chipmakers led the decline, with Samsung Electronics dropping 6.4% to 329,000 won ($213) and SK hynix falling 8.18% to 2.11 million won. Other large-cap stocks also declined, including SK Square (down 8.82% to 1.24 million won) and Hyundai Motor (down 5.29% to 663,000 won). Foreign investors sold 564.8 billion won worth of shares, while institutional investors sold an additional 51.8 billion won. Retail investors were the only net buyers, purchasing 580.3 billion won worth of stocks. The selloff followed Broadcom’s earnings report and weaker-than-expected guidance, which triggered a 13% drop in its shares on Wall Street. The disappointment spread across the semiconductor sector, causing broader losses in chip-related stocks globally.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.