KOSPI tops 8,000 intraday before tumbling below 7,500 on foreign sell-off

The KOSPI, which briefly crossed the 8,000 milestone for the first time ever during intraday trading on Friday, later extended losses and slid below the 7,500 level as foreign investors accelerated their sell-off. The sharp decline in KOSPI200 futures also triggered a sell-side sidecar. The benchmark index opened 29.66 points, or 0.37 percent, lower at 7,951.75, but soon rebounded and climbed to an intraday high of 8,046.78. The move marked the first time the KOSPI had traded above the 8,000 level, only seven trading days after breaking through the 7,000 mark for the first time on May 6. Momentum quickly faded, however, with the index turning negative and tumbling to close at 7,493.18, down 488.23 points, or 6.12 percent, from the previous session. Analysts said mounting concerns over overheating following the market’s steep rally, coupled with continued foreign selling, dragged the benchmark sharply lower. The Korea Exchange activated a sell-side sidecar at about 1:28 p.m., halting program sell orders for five minutes after KOSPI200 futures dropped 5.09 percent from the previous close

Original source: Korea Times