KOSPI Slumps 6% After Topping 8,000 as Foreign Selling Hits Retail Mood

On May 15, the KOSPI briefly confirmed the “8,000 point” milestone by rising to the 8,046 range, but heavy profit-taking sent the index down 488.23 points, or 6.12%, to close at 7,493.18. It fell as low as the 7,370 range intraday, and a KOSPI sell-side sidecar was triggered around 1:28 p.m. According to Hankyung.com, concerns that Japan’s inflation could lead to rate hikes and that higher oil prices could end the U.S. rate-cut cycle fueled risk-asset avoidance. Foreign investors net sold 5.604 trillion won on the main board, institutions sold 1.734 trillion won, while individuals bought 7.23 trillion won. The won-dollar exchange rate topped 1,500 for the first time in about a month, and Samsung Electronics and SK Hynix fell by around 8% and 7%, respectively. Source: hankyung.com