On the 21st, the domestic market showed weakness following yesterday’s sharp rise, with both the KOSPI and KOSDAQ recording downtrends. The KOSPI fell 92.63 points (≈1.35%) to close at 6,759.95, while the KOSDAQ began the day at 824.05 after dropping 16.84 points (≈2.00%).
This decline, which followed yesterday’s rise, displayed greater volatility than the previous trading day. On the 20th, the KOSPI had risen by 381.41 points to close at 6,852.58, recording a gain of 5.89%, and on the same day the KOSDAQ climbed 16.43 points to finish at 840.89. However, the opening level on the 21st was 16.84 points lower than yesterday’s closing price, dropping below the 840 mark.
The sudden fall in the KOSPI is interpreted as a result of the weakening of U.S. Treasury yields and large-cap stocks. On the 19th, a bearish phase emerged at the sell side, while on the 20th, the buy side was activated, causing a significant shift in market sentiment over two consecutive days. This market uncertainty can be softened by a temporary pause in programmatic trading, which would calm volatility.
When the KOSPI dropped 5.80% to close at 6,471.17 on the 19th, the domestic market trembled greatly. The recent decline has partially reversed part of yesterday’s gains and shows that the domestic market continues to exhibit volatility right after a downtrend. Although both the KOSPI and KOSDAQ are still only at opening levels on the 21st, it is difficult to determine the overall trend; nevertheless, the current market requires adjustment within the downtrend.