South Korea’s stock market activated a sell-side circuit for the KOSPI index following a significant drop. Program trading for the KOSPI was briefly halted around 10:23 am due to heavy selling pressure triggered by Samsung Electronics Co.’s second-quarter earnings estimate release. The estimate, surpassing market expectations by 6.2 percent, led to profit-taking in local technology stocks.
The preliminary estimate of Samsung’s operating profit for April-June stood at 89.4 trillion won, with a potential operating profit of around 100 trillion won excluding employee bonus provisions. The KOSPI, starting at a 1.6 percent decline, plummeted to 7,568.59 during the session, despite gains in the U.S. market.
Institutional and foreign investors sold a net 97.3 billion won and 1.74 trillion won, respectively, while individuals bought a net 1.81 trillion won. Major companies like Samsung Electronics, SK hynix, Hyundai Motor, and Hanwha Aerospace experienced notable declines. Conversely, Amorepacific and SK Innovation saw gains amidst the market turmoil.
The Korean won was trading at 1,527.40 won per U.S. dollar at 11:20 a.m., marking a slight increase from the previous session.
