[Breaking] Circuit Breaker Triggered as KOSPI Plunges 8%... Foreigners Net Sell 3.3 Trillion Won

A circuit breaker was triggered on the Korea Exchange's securities market after the KOSPI plunged more than 8% during the session, following an earlier sidecar. This is interpreted as the result of a rapid expansion in sell-offs driven by a combination of instability in global financial markets and deteriorating investor sentiment.

From right after the opening bell, joint sell-offs by foreign and institutional investors caused the KOSPI's decline to widen rapidly, ultimately triggering the circuit breaker, which temporarily halts program trading.

■ Supply and Demand Trends by Investor Type

In the KOSPI (cash) market, foreigners led the decline with net selling of 3.3478 trillion won. Institutions also joined in with net selling of 220.4 billion won. Meanwhile, retail investors net purchased 3.5053 trillion won, engaging in bargain hunting amid the steep decline.

The situation was somewhat different in the KOSDAQ market. Foreigners and institutions net purchased 172.7 billion won and 97.3 billion won, respectively, while individuals net sold 267.2 billion won.

In the futures market, foreign selling was even more pronounced. Foreigners net sold 1.2282 trillion won worth, while institutions and individuals net purchased 881.1 billion won and 326.6 billion won, respectively.

In the options market, based on call options, individuals and institutions net purchased 5.3 billion won and 6.5 billion won, respectively, while foreigners net sold 11.9 billion won. For put options, institutions and foreigners net purchased 13.1 billion won and 11.4 billion won, respectively, while individuals net sold 3.5 billion won.

■ Market Analysis and Outlook

Market analysts note that while simultaneous selling by foreigners in both the cash and futures markets accelerated the index's decline, the large-scale bargain hunting by retail investors was insufficient to defend against the drop.

Investors are keeping a close eye on future trends in global stock markets, changes in foreign supply and demand, and whether volatility will ease.

[This article was written with the assistance of AI. This article is for reference only in making investment decisions, and the final responsibility for investments lies with the investor.]