[Edaily Reporter Kwon Oh Seok ] The KOSPI closed the session on “Black Friday,” barely holding onto the 5,000-point mark.

According to MP Doctor on the 6th, the KOSPI opened at 5,263.26, down 120.54 points (2.24%) from the previous trading day, and closed at 5,059.69, down 324.11 points (6.02%).
The KOSPI failed to withstand the shock of the U.S. “Blue Wave” that day and fell below the 5,000 mark. Earlier, as the “blue wave” materialized with the Democrats winning both the U.S. Senate and House of Representatives in the midterm elections, fears swept through the stock market that Washington’s policy stance would shift toward “tighter regulation of artificial intelligence (AI).” Consequently, the U.S. Nasdaq index plunged more than 5% overnight, and the Philadelphia Semiconductor Index also tumbled by more than 12%.
Consequently, the domestic stock market was also adversely affected, and the 5,000-point level collapsed during the trading session. This marks the first time the KOSPI has fallen below 5,000 in nine months, since last February, and as foreign investors’ selling pressure surged, the circuit breaker was triggered for the 11th time this year. Although the index fell as low as 4,911.28 during the session, it quickly recovered its losses and barely managed to regain the 5,000 mark.
Based on regular trading session figures for the day, foreign investors alone recorded net sales of 2.7687 trillion won, while retail and institutional investors posted net purchases of 604.7 billion won and 1.6999 trillion won, respectively. By trading type, combined arbitrage and non-arbitrage trades showed a net selling position of 1.6043 trillion won.
Major domestic semiconductor stocks were also unable to avoid a sharp decline. During regular trading that day, SamsungElectronics(005930)traded at 188,700 won, down 12,800 won (6.35%) from the previous trading day, breaking the “200,000 won” barrier. SK hynix(000660)traded at 1,132,000 won, down 132,000 won (10.44%).
On the KOSPI market that day, circuit breakers and sell-side cars were triggered in quick succession. Around 9:03 a.m., the KOSPI fell 459.19 points (8.52%) from the previous trading day to 4,924.61, triggering a Level 1 circuit breaker. As a result, trading on the KOSPI was suspended for 20 minutes. This was the 11th circuit breaker triggered this year and the 17th in history.
As soon as trading resumed after the 20-minute suspension, around 9:34 a.m., the sell-side sidecar was also triggered. This marks the second consecutive day following the previous day (the 5th) and the 30th time this year. At the time of activation, the KOSPI 200 futures stood at 781.00, down 56.80 points (6.77%) from the previous trading day’s reference price of 837.80. The sell-side sidecar is triggered when the KOSPI 200 futures price remains down by more than 5% from the previous day’s closing price for at least one minute. It suspends the effectiveness of program sell orders for five minutes to mitigate market shock.
Nevertheless, securities analysts point out that concerns over tighter AI regulations leading to a decline in investment have been overly reflected in the stock market.
Kang Hye-seong, an analyst at SANGSANGINVESTMENT&SECURITIES, stated, “Historically, the Philadelphia Semiconductor Index has often surged sharply following a steep decline. In the case of the KOSPI, while returns were poor for the next five days, the market often recovered over the following 15 days.” She added, “Since investor sentiment is very weak in the short term, the volatile trend may continue through next week. However, it is important to keep in mind that investment opportunities ultimately lie within fear.”
Lee Kyung-min, an analyst at DaishinSecurities, also advised, “Considering the 5,330 level—which corresponds to a 12-month forward price-to-book ratio (PBR) of 1—there is limited benefit to joining in on further selling.” He added, “While the possibility of increased short-term volatility remains, a strategy of gradual buying to take advantage of the sharp decline and increasing portfolio weightings remains effective.”
Meanwhile, the KOSDAQ index opened at 654.43, down 23.98 points (3.53%), and closed at 644.27, down 34.14 points (5.03%). Based on regular trading session data, institutional investors were the only net buyers in the KOSDAQ market, with net purchases totaling 205.5 billion won, while foreign and retail investors recorded net sales of 99.9 billion won and 110.3 billion won, respectively. By trading program, combined arbitrage and non-arbitrage trades showed a net selling position of 137.6 billion won.