Today (26th), the KOSPI plunged more than 3% and closed at the lowest level in two years and two months.



Today, the KOSPI closed at 2,220.94, down 69.06 points (3.02%) from the previous trading day.



Based on the closing price, this is the lowest level since July 27, 2020 (2,217.86) as well as a new year low.



After opening at 2,260.80, down 29.20 points (1.28%) from the previous market, the index quickly declined right from the beginning of the market and pushed back to 2,215.36 during the day, dropping to the lowest level in two years and two months since July 27, 2020 (2,203.48).



In the stock market, individuals net sold 245.6 billion won, bringing down the index, foreigners net sold 3.6 billion won, and institutions net bought 280 billion won.



In the afternoon, individuals increased their selling range amid the sharp decline in the stock market, and net sold more than 400 billion won in the two major markets (KOSPI and KOSDAQ) on the same day.



When the exchange rate of the won against the dollar soared by more than 20 won in one day and soared to the 1,430 won level, fear spread.



In the Seoul foreign exchange market today, the won/dollar exchange rate rose 22.0 won to close at 1,431.3 won.



It is the first time in 13 years and 6 months since the exchange rate exceeded 1,430 won on March 17, 2009 (1,436.0 won based on the high price).



Along with the sharp rise in the exchange rate, bad news from the US and Europe since last weekend weighed the market all the way.



Fears of a recession continued after the Federal Open Market Committee (FOMC) meeting last week, which took a 'giant step' (a 0.75 percentage point increase in interest rates at a time).



Bad news from Europe, such as the UK government's announcement of tax cuts and the inauguration of the far-right government in Italy, also dampened investor sentiment.



Seo Sang-young, a researcher at Mirae Asset Securities, explained, "The increase in the domestic stock market's decline is due to the widening of the won's weakness, such as the won/dollar exchange rate exceeding 1,430 won due to the strengthening of the dollar due to an additional plunge in the pound."



South Korean semiconductor giants Samsung Electronics (-1.10%) and SK Hynix (-1.20%) both fell by 1% to set new 52-week lows, followed by LG Energy Solutions (-3.04%), Samsung Biologics (-1.56%) and Top 10 stocks by market cap, including Samsung SDI (-2.13%), LG Chem (-5.46%), Hyundai Motor (-4.20%), Naver (-2.85%), Kia (-3.61%), and Kakao (-2.13%) Most of these have declined significantly.



By industry, most stocks fell, including construction (-5.68%), machinery (-5.62%), non-metallic minerals (-5.18%), and transportation/warehousing (-4.45%).



The number of stocks dropped from the stock market was 891, the most this year.



The KOSDAQ index closed at 692.37, down 36.99 points (5.07%) from the previous field.



The KOSDAQ index closed below the 700 line for the first time in two years and three months since June 15, 2020 (693.15).



Today, the KOSPI market cap decreased by 54.4 trillion won and the KOSDAQ market cap by 16.6 trillion won, respectively, and about 71 trillion won of the market cap evaporated from the stock market.



(Photo = Yonhap News)