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KOSPI tops 8,000 intraday before tumbling below 7,500 on foreign sell-off
A ceremony celebrating the KOSPI’s breakthrough above the 8,000 mark is held at the dealing room of Hana Bank headquarters in Seoul, Friday. After briefly crossing the 8,000 milestone for the first time ever during intraday trading, the index tumbled to close at 7,493.18, down 488.23 points, or 6.12 percent, from the previous session, as foreign investors accelerated their sell-off. Yonhap
By Jun Ji-hye
KOSPI 10,000 hopes rise despite volatility concerns over Nvidia earnings, oil prices
The KOSPI, which briefly crossed the 8,000 milestone for the first time ever during intraday trading on Friday, later extended losses and slid below the 7,500 level as foreign investors accelerated their sell-off. The sharp decline in KOSPI200 futures also triggered a sell-side sidecar.
The benchmark index opened 29.66 points, or 0.37 percent, lower at 7,951.75, but soon rebounded and climbed to an intraday high of 8,046.78. The move marked the first time the KOSPI had traded above the 8,000 level, only seven trading days after breaking through the 7,000 mark for the first time on May 6.
Momentum quickly faded, however, with the index turning negative and tumbling to close at 7,493.18, down 488.23 points, or 6.12 percent, from the previous session.
Analysts said mounting concerns over overheating following the market’s steep rally, coupled with continued foreign selling, dragged the benchmark sharply lower.
The Korea Exchange activated a sell-side sidecar at about 1:28 p.m., halting program sell orders for five minutes after KOSPI200 futures dropped 5.09 percent from the previous close. The safeguard is typically imposed when futures prices fall more than 5 percent and remain at that level for at least one minute to help calm excessive market swings.
After closing at a low of 2,293.70 on April 9, 2025, amid market turmoil fueled by uncertainty surrounding U.S. tariff policies, the KOSPI staged a sharp recovery and rose to 4,042.83 by Oct. 27 that year, surpassing the 4,000 level for the first time.
The index continued its rally, breaking above 5,000 on Jan. 27 this year before climbing past 6,000 on Feb. 25 on the back of strong performances by Samsung Electronics and SK hynix.
The advance from 6,000 to 7,000 took about 70 days as global financial markets suffered a steep correction throughout March due to the Iran war. In contrast, the jump from 7,000 to 8,000 was achieved in less than two weeks, highlighting the blistering pace of the latest rally.
Overnight, all three major U.S. stock indexes ended higher, supported by continued strength in technology shares.
Market sentiment improved after U.S. President Donald Trump and Chinese President Xi Jinping reaffirmed their commitment to bilateral cooperation during summit talks held Thursday in Beijing.
“The meeting between the two leaders was largely in line with market expectations,” said Seo Sang-young, an analyst at Mirae Asset Securities. “Both countries agreed on the importance of preventing Iran from developing nuclear weapons and maintaining open access through the Strait of Hormuz, which investors interpreted as a symbolic sign of easing geopolitical tensions.”
On the back of Wall Street’s rally, the Korean stock market initially gained traction in early trading, but the upward momentum faded and the market later turned lower as optimism surrounding the U.S.-China summit had already been partially reflected in prices and foreign investors continued their selling spree.
Still, brokerages say the KOSPI may continue its upward trajectory on the back of solid earnings momentum, with some market participants even suggesting the possibility of the benchmark eventually reaching the 10,000 mark.
At the same time, concerns are growing that market volatility could increase in the near term as investors await Nvidia’s earnings report later this month. Inflationary pressure stemming from rising oil prices amid the Middle East crisis is also being cited as a downside risk.
“Factors such as renewed upward pressure on interest rates following the U.S. inflation shock and possible sell-on-news sentiment after Nvidia’s earnings release next week could strengthen foreign investors’ selling pressure and dampen the market rally,” Han Ji-young, an analyst at Kiwoom Securities, said.
The secondary Kosdaq index, meanwhile, opened up 6.14 points, or 0.52 percent, at 1,197.23, but gradually gave up its early gains and slipped into negative territory to close at 1,129.82, down 61.27 points, or 5.14 percent, from the previous session.
In Seoul’s foreign exchange market, the Korean won opened at 1,494.2 won per dollar, down 3.2 won from the previous session, and extended its losses to finish onshore trading at 1,500.8 won, weakening 9.8 won.