"Has the market cap reversal marked a peak?" KOSPI falls more than 2%, breaks below 9,000 [fn Morning Market]

[Financial News] KOSPI moved up and down before falling below the 9,000 level. Recent market sentiment has turned more cautious about a possible peak, as SK hynix has overtaken Samsung Electronics in market capitalization on a common-share basis.
According to the Korea Exchange (KRX) on the 23rd, as of 10:30 a.m., KOSPI was trading at 8,925.46, down 189.09 points, or 2.07%, from the previous session. The index opened at 9,083.54, down 31.01 points, or 0.34%, from the previous close, and climbed as high as 9,175.45 intraday before reversing lower.
In the main board market, individual investors were the only net buyers, purchasing 262.13 billion won. Foreign investors and institutions were net sellers, offloading 215.34 billion won and 44.01 billion won, respectively.
Among the market-cap leaders, SK hynix (-4.25%), Samsung Electronics (-4.24%), Samsung Electro-Mechanics (-7.18%), and Hyundai Motor Company (-7.23%) were all lower. By contrast, SK Square (0.91%), Samsung Life Insurance (1.66%), Samsung Biologics (1.24%), KB Financial Group (1.59%), and SK Holdings (2.05%) were gaining.
Most sectors were also in decline. Construction (-6.88%), medical and precision instruments (-6.34%), electricity and electronics (-5.61%), transportation equipment and parts (-5.40%), manufacturing (-5.40%), and IT services (4.61%) were among the weaker areas. Food and beverages, including tobacco (0.77%), and real estate (0.05%) were higher.
The previous day, SK hynix overtook Samsung Electronics in market capitalization on a common-share basis. That has led some to raise concerns that the market may be nearing a peak. It is the first time in about 25 years, since 2000, that a company has surpassed the KOSPI's top market cap on a common-share basis.
Han Ji-young, a researcher at Kiwoom Securities, explained, "The battle for the No. 1 market-cap spot is interesting in itself, but it can also raise concerns that the stock market may be nearing a peak. That is because Cisco's rise to No. 1 by market cap during the dot-com bubble was seen as a signal of the bubble's collapse."
She added, "However, we should also note that there were counterexamples to Cisco during the dot-com bubble. NVIDIA has also reached the No. 1 spot by market cap, but it continues to trend upward as it stands out as a leading beneficiary of the Artificial Intelligence investment cycle."
At the same time, KOSDAQ was trading at 937.76, down 30.64 points, or 3.16%, from the previous session. The index opened at 9.76 points, or 1.01%, before widening its losses.
On KOSDAQ, institutions were net buyers of 91.3 billion won. Individuals and foreign investors were net sellers, dumping 47.4 billion won and 45.2 billion won, respectively.
yimsh0214@fnnews.com Lim Sang-hyeok Reporter