On the 26th, the KOSPI index closed down for the fifth consecutive day. The aftershocks of the stock price crash triggered by SG Securities continued through the day, with some stocks experiencing a three-day streak of hitting the lower price limit. The exchange rate ended higher, at one point reaching the highest level of the year during trading.
On this day, the KOSPI closed at 2,484.83, down 4.19 points (0.17%) from the previous trading day. This marked a decline for five consecutive trading days since the 20th. Individual investors sold a net 221.8 billion KRW, while foreigners and institutions sold 98.5 billion KRW and 148.7 billion KRW worth of stocks, respectively.
Among the top market capitalization groups in the KOSPI market, Samsung Electronics (0.79%), LG Energy Solution (2.90%), SK Hynix (2.22%), and Hyundai Motor (0.25%) showed gains. In contrast, Samsung Biologics (-0.38%), LG Chem (-2.02%), and Samsung SDI (-0.42%) underperformed.
Overnight, concerns about regional bank instability reignited as First Republic Bank’s stock price plunged nearly 50% in after-hours trading in the U.S., causing the domestic stock market to start the day slightly down. However, technology stocks such as Alphabet and Microsoft reported solid earnings, which helped limit the extent of the decline.
Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "Strong earnings from Microsoft and Alphabet and positive outlooks on artificial intelligence (AI) boosted related themes," adding, "Positive prospects for the domestic entertainment industry continue."
In particular, some stocks related to the 'SG Securities-triggered crash' under investigation by financial authorities for suspected stock manipulation fell to their lower price limits again on this day. Daesung Holdings, Samchully, Seonkwang, and Seoul City Gas closed at their lower price limit (30% drop). Dow Data and Sebang avoided the lower limit but still posted significant declines of 19.34% and 25.72%, respectively. Daol Investment & Securities and Harim, which both hit the lower limit on the 24th, fell by 4.89% and 5.04% respectively, showing relatively smaller declines. These eight stocks all recorded simultaneous lower price limits on the 24th after a large volume of sell orders were placed through SG Securities’ trading window.
With the flood of sell orders, the prices of these eight stocks plunged by nearly 70% within just three days. Six stocks?Daesung Holdings (-65.64%), Samchully (-65.63%), Seoul Gas (-65.56%), Seonkwang (-65.65%), Sebang (-63.51%), and Dow Data (-60.46%)?each dropped more than 60% compared to their closing prices on the 21st. Harim Holdings and Daol Investment & Securities fell by 42.24% and 39.96%, respectively.
According to the Korea Exchange, the market capitalization of these eight stocks decreased by 7.3906 trillion KRW compared to the 21st. Seoul Gas’s market cap shrank by more than 1.53 trillion KRW over three days, while Daesung Holdings and Samchully each lost over 1.3 trillion KRW. During the same period, Harim Holdings and Seonkwang’s market caps decreased by 720 billion KRW and 770 billion KRW, respectively, and Sebang’s market cap dropped by 520 billion KRW. In response, the prosecution has initiated investigations, including travel bans on related individuals at the request of financial authorities, to verify the stock manipulation suspicions.
The KOSDAQ index closed at 830.44, down 8.27 points (0.99%) from the previous trading day. Like the KOSPI, it showed a five-day consecutive decline, falling to the low 830 range. Individual and institutional investors bought net amounts of 142.5 billion KRW and 15.5 billion KRW, respectively, while foreigners sold a net 150.1 billion KRW.
EcoPro BM, the leading stock on the KOSDAQ, fell 4.34% to 242,500 KRW, while EcoPro rose 0.34% to close at 599,000 KRW. Other stocks such as Celltrion Healthcare (-0.29%), L&F (-3.50%), and HLB (-0.29%) also closed lower.
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,336.3 KRW, up 4.1 KRW from the previous day. During the session, it briefly rose above 1,340 KRW, setting a new yearly high.
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