"SK hynix Plunges 8%? A V-Shaped Rebound Looks Hard This Time" ... Brokerage Houses Warn of a 'Correction'

[Financial News] The KOSPI fell more than 4% again on June 10, erasing the previous day's sharp rebound and slipping back below the 8,000 level. Samsung Electronics and SK hynix, the country's top two semiconductor stocks and the No. 1 and No. 2 companies by KOSPI market capitalization, also finished lower.

Even the New York stock market fell across the board, deepening market anxiety.

On June 10 local time, the United States' May Consumer Price Index (CPI) fueled inflation concerns and reinforced expectations of a rate hike by the Federal Reserve System (Fed). As a result, the three major indexes on Wall Street each fell more than 1%. Safe-haven assets such as gold and silver, as well as Bitcoin, the leading cryptocurrency, also moved lower.

The Dow Jones Industrial Average (DJIA) fell 653.33 points, or 1.87%, from the previous session to close at 49,918.78, losing the 50,000 level. The S&P 500 fell 119.66 points, or 1.62%, to 7,266.99, while the NASDAQ plunged 509.32 points, or 1.98%, to close at 25,169.50.

Semiconductor stocks remained weak, with NVIDIA tumbling 3.7%.

According to the Korea Exchange (KRX), the KOSPI closed at 7,730.82, down 366.11 points, or 4.52%, from the previous day. It opened 197.16 points, or 2.43%, lower at 7,899.77 and at one point fell as low as 7,541.11 before recovering slightly.
The decline widened in the afternoon, and the KOSPI market briefly triggered a program sell order temporary suspension, known as a sell-side sidecar. That came after a sell-side sidecar on June 8 and a buy-side sidecar on June 9, marking three consecutive trading days of sidecar triggers in the main board market.
The roller-coaster session also swept up Samsung Electronics and SK hynix, the No. 1 and No. 2 stocks by market capitalization. Samsung Electronics closed at 302,500 won, down 6.06% from the previous session, while SK hynix ended at 2,048,000 won, down 7.54%. Both stocks managed to hold the 300,000-won and 2 million-won levels, respectively, but they showed extreme volatility during the session, falling as low as 295,500 won and 1,992,000 won.
Meanwhile, foreign investors posted a net sell of 280.42 billion won, extending their selling streak to 23 consecutive trading days from May 7 through June 10. Institutions also recorded net sales of 226.73 billion won. Retail investors, however, bought a net 486.11 billion won and helped support the index floor. In the KOSPI 200 futures market, individuals and foreigners each posted net sales of 55.1 billion won and 55.2 billion won, respectively, while institutions recorded net purchases of 134.7 billion won.

Some market watchers said the latest drop could develop into a correction phase driven by fundamental concerns, rather than a short-term swing. Yang Hyung-mo, a researcher at DS Investment & Securities Co., Ltd., said, "This time, it is difficult to say whether it will be a simple V-shaped rebound or just another volatility-driven market." He added, "If it is confirmed as a fundamental issue, it could lead to an EPS downgrade and a time-based correction rather than mere volatility."

bng@fnnews.com Kim Hee-sun Reporter