KOSPI Slumps 6% After Breaking 8,000 as Foreign Selling Shakes Retail Investors

On May 15, the KOSPI briefly confirmed the so-called “8,000-point KOSPI” by rising to the 8,046 range, but profit-taking orders poured in and the index closed at 7,493.18, down 488.23 points, or 6.12%, from the previous session. It fell as low as the 7,370 range intraday, and a KOSPI sell-side sidecar was triggered around 1:28 p.m. Risk-asset avoidance was stirred by concerns that Japan’s inflation could lead to rate hikes and by views that further gains in international oil prices could end the U.S. rate-cut cycle. Foreigners net sold 5.604 trillion won and institutions 1.734 trillion won, while individuals net bought 7.23 trillion won. The won-dollar rate closed at 1,500.8 won. Source: hankyung.com