The KOSDAQ index closed below the 800 level for the first time in 10 months. Trading value also stayed below 7 trillion won for the fourth consecutive session, a sign that investor sentiment is rapidly cooling. The sector rotation seen late last month, when funds exiting the KOSPI flowed into the KOSDAQ, has also vanished.
According to the Korea Exchange (KRX) on the 9th, the KOSDAQ index closed at 785.00 on the 8th, down 46.23 points (5.56%) from the previous session. The index opened at 816.39, down 14.84 points (1.79%), and extended its losses. At 1:33 p.m., a sell-side sidecar was triggered, temporarily halting the execution of program sell orders. The index later slid as low as 778.70 during the session, falling below the 800 level for the first time in about 10 months since September last year.
Expectations of a "Cheonsdak" — the index reaching the 1,000 mark — that had built since the start of the year have effectively been dashed. After the artificial intelligence (AI) semiconductor rally, buying spread to biotech and secondary battery stocks, sustaining the KOSDAQ's strength. Recently, however, risk-off sentiment has intensified alongside a correction in large-cap tech stocks, and the index has given back most of its gains.
The chill in investor sentiment is also evident in trading value. KOSDAQ trading value fell below 7 trillion won on the 3rd and again on the 6th and 7th — the first consecutive readings below that level this year — and came in at just 6.1062 trillion won on the 8th. Compared with the rotation-driven market just 10 days earlier, buying has contracted noticeably.
Fund flows were also weak. Foreign investors net bought 336.9 billion won, but institutions and individuals net sold 145.2 billion won and 192.7 billion won, respectively, driving the index lower.
Top market-cap stocks fell across the board. Alteogen (196170.KQ) (-7.11%), Ecopro (086520.KQ) (-7.58%), Ecopro BM (247540.KQ) (-6.32%), Rainbow Robotics (-6.75%) and Kolon TissueGene (950160.KQ) (-7.84%) all dropped in the 6-8% range, while ABL Bio (298380.KQ) plunged 13.21%.
As recently as the 29th of last month, the KOSDAQ surged 8.13% while the KOSPI closed slightly lower, showing rotation spreading from AI semiconductors to biotech and secondary batteries. But with the KOSPI and KOSDAQ recently tumbling in tandem, even money leaving large caps has failed to flow into the KOSDAQ, and analysts say risk-off sentiment now dominates the market.
"With continued weakness in KOSDAQ large caps, the index has fallen below the 800 level, and the materials, parts and equipment sectors also showed broadly sluggish performance," said Kang Jin-hyuk, an analyst at Shinhan Securities. "The relative strength index (RSI) remains in oversold territory due to weakness in major sectors." He added, "Technically, the index has entered a zone where it could attempt a short-term rebound, but a meaningful rebound would require new momentum, such as expanded AI investment."
