Has the Aftermath of the Surge Arrived? KOSPI Falls Back to the 6,100 Level as Samsung Electronics and SK hynix Weaken Together

[Financial News] KOSPI opened more than 1% higher in early trading, but turned lower as Samsung Electronics and SK hynix both weakened. The index is being dragged down by profit-taking after the record surge on the 31st of last month, along with a pause in the market, especially among semiconductor stocks.
As of 9:57 a.m. on the 4th, KOSPI stood at 6,147.45, down 110.00 points, or 1.76%, from the previous trading day. It had risen as high as 6,351.38 earlier in the session, opening up 1.50%, but gave back all of those gains and moved into negative territory. The intraday low fell to 6,080.25, down 2.83%.
Investor sentiment was centered on large semiconductor stocks. At the same time, Samsung Electronics was trading at 231,500 won, down 3.34%, while SK hynix was at 1,507,000 won, down 3.83%. As the two largest stocks by market capitalization both fell more than 3%, they deepened KOSPI's overall losses.
By sector, weakness in the electricity and electronics segment also added pressure to the index. In contrast, mid-cap stocks rose 1.44% and small-cap stocks gained 1.56%, showing a clear divergence among individual stocks.
Market experts say the move is a natural correction after last week's sharp gains in semiconductor stocks.
Lee Kyung-min, a researcher at Daishin Securities, said, "Last Friday, Samsung Electronics and SK hynix surged as the market grew more convinced that deleveraging tied to AI semiconductors had entered its final stage." He added, "Because share prices jumped sharply in just one day, profit-taking has concentrated in the market, and a correction is now unfolding."
He said leverage-driven flows that had increased market volatility recently are now easing. "Since the base deposit for single-stock leveraged exchange-traded funds (leveraged ETFs) was raised to 30 million won on July 31, trading volume in Samsung Electronics and SK hynix leveraged ETFs has plunged," he explained. "Considering that average daily trading volume reached 750 billion won from the launch on May 27 through July 30, we can see that the concentration of flows caused by leveraged trading has eased significantly, and the factors behind rising volatility are also calming down."
He also pointed to the decline in margin loans as a positive sign. "As of July 31, the margin loan balance fell by 310 billion won from the previous day, which is also worth noting," he said. "This supports the view that deleveraging in semiconductor stocks, which was the backdrop for last week's sharp rebound, is nearing its end."
He added, "As margin positions have been largely cleared, the risk of additional forced sales of securities and the resulting mechanical selling pressure has diminished, which is positive for market volatility going forward." He forecast that "for the time being, the market will continue to go through a period of consolidation after the sharp rally, while investors check whether supply and demand are stabilizing."
[email protected] Choi Doo-sun Reporter