Samsung Electronics and SK hynix plunge as KOSPI falls 7.89% and foreigners sell a net 5 trillion won [fn closing market report]

[Financial News] Domestic stocks were shaken by massive foreign selling, sending the KOSPI down by nearly 8%. Samsung Electronics and SK hynix fell more than 9% and 14%, respectively. Selling sidecars were triggered on both the KOSPI and KOSDAQ, underscoring the extreme rise in market volatility.
According to the Korea Exchange on the 2nd, the KOSPI closed at 7648.09, down 655.32 points, or 7.89%, from the previous session. The KOSDAQ also ended the day at 866.72, down 62.63 points, or 6.74%.
Foreign investors were the main driver of the sharp decline, selling a net 5.133 trillion won on the Korea Exchange Main Board. Institutions also sold a net 475.7 billion won. Retail investors, meanwhile, bought a net 5.396 trillion won, absorbing the foreign sell-off.
Heavy program selling hit the market from the opening bell, and a sell sidecar was triggered on the Korea Exchange Main Board at 9:07:03 a.m. after a sharp drop in KOSPI 200 Index Futures. Later, at 12:47:15 p.m., a sell sidecar was also triggered in the KOSDAQ market as volatility widened in KOSDAQ 150 Futures and the KOSDAQ 150 Spot Index.
Major stocks by market capitalization also fell across the board. Samsung Electronics closed at 286,000 won, down 9.06% from the previous session, losing the 290,000-won level. SK hynix ended the day at 2,187,000 won, plunging 14.57%.
Brokerages said the decline widened as foreign investors sold both spot and futures positions while program trading added to the pressure. They also noted that mechanical program trading amplified losses in a market already facing higher volatility amid recent growth in single-stock leveraged exchange-traded fund (ETF) trading and derivatives activity.
dschoi@fnnews.com Choi Du-seon Reporter