KOSPI, 6,500선 위기: Market Update
Daily Market Brief: Essential Updates for Local Stocks|19 min read9.3AI quality score — automatically evaluated based on accuracy, depth, and source quality
On Friday, May 2, 2026, the South Korean stock market faced high volatility. Following a failed attempt to hold above 6,800 during Thursday's session, the KOSPI index retreated to close near the 6,500 mark, driven by massive selling from foreign investors. Fears of a hawkish Fed and rising oil prices dampened sentiment, making the sustainability of April’s 30% rally the primary focus for May.
KOSPI Emergency Market Briefing — May 2, 2026
Market Snapshot
- KOSPI: 6,508 (Down ~1.9%, plummeted after peaking above 6,800 intraday)
- KOSDAQ: ~1,220 (Flat to slightly lower, impacted by weakness in large-cap biotech)
- KRW/USD Exchange Rate: 1,490 range (Opened at 1,486.5 on April 30, trended higher)
- Market Sentiment: A massive 1.5 trillion KRW net sell-off by foreigners triggered a sharp intraday drop. Buying by retail and institutional investors could not offset the pressure, leading to heightened volatility following April's rapid gains.
Order Flow (KOSPI Market)
- Foreigners: Net sell-off of approx. 1.5 trillion KRW—heavy selling in Samsung Electronics, SK Hynix, Daewoo E&C, and LG Display.
- Institutions: Shifted to net buying (defensive positioning)—focused on large-cap semiconductors and electronics.
- Retail: Net buying absorbed some of the foreign selling—though April's cumulative net sell reached ~14 trillion KRW, nearing an all-time record.
Top 5 Key News
1. KOSPI dives after hitting 6,800—Foreigners sell 1.5 trillion KRW
- What happened?: On April 30, the KOSPI tested the 6,800 level, attempting an all-time high, but a 1.5 trillion KRW dumping by foreign investors caused a reversal, pushing the index below 6,600 to close near 6,500. A hawkish Fed decision and surging oil prices are cited as the main drivers for this flight from risk assets.
- Market Impact: Downward pressure across all sectors, especially in semiconductors, construction, and display components.
2. Semiconductor market cap share tops 43%—Samsung & SK Hynix dominance
- What happened?: The combined market capitalization of Samsung Electronics and SK Hynix has soared to 43% of the KOSPI. Their massive influence follows a surge in AI infrastructure investment in April. Some analysts note that Samsung Group and SK Group combined now account for 62% of the KOSPI's total market cap.
- Market Impact: The KOSPI's direction is now effectively dictated by these two stocks, leaving non-semiconductor companies increasingly sidelined.
3. April’s 30% rally: "Sell in May" vs. 7,000 goal
- What happened?: The KOSPI jumped 30.61% in April, marking an all-time intraday high of 6,700. Debates are heating up between the seasonal "Sell in May" strategy and the potential for a run at 7,000. Experts say the key for May will be whether semiconductor earnings momentum can continue.
- Market Impact: Profit-taking after the rapid rally poses a correction risk for early May, with increased volatility in chip stocks expected.
4. Retail investors sell 14 trillion KRW in April—Near record highs
- What happened?: Despite the KOSPI crossing 6,500 for the first time, retail investors offloaded about 14 trillion KRW in April, close to their all-time record net sell. This highlights significant profit-taking by individuals during the rally.
- Market Impact: Persistent selling by retail investors acts as resistance, limiting further upside momentum.
5. KRW/USD hits 1,490 range—Fed hawkishness and oil prices
- What happened?: The KRW/USD exchange rate opened at 1,486.5 on April 30, up 7.5 won from the previous close, and rose further to the 1,490 level during the day. A combination of the Fed’s hawkish stance and Middle East-related oil price hikes fueled dollar strength and weakened the won.
- Market Impact: While a weaker won can help exporters, it creates concerns over the declining value of won-denominated assets, further discouraging foreign investment.
Key Sectors & Themes
Semiconductors (AI Infrastructure beneficiaries)
- Trend: The leaders of the April rally, Samsung Electronics and SK Hynix, faced a sharp correction on April 30 due to foreign selling. The Philadelphia Semiconductor Index (SOX) also cooled after an 18-day streak, signaling a global adjustment.
- Key Stocks: Samsung Electronics (No. 1 market cap), SK Hynix (No. 2), Samsung Electronics Pref. (No. 5).
AI Infrastructure (Transformers & Power equipment)
- Trend: Continued strength due to expectations for increased US AI infrastructure spending. These stocks remained relatively independent of the broader sell-off, with several hitting limit-ups.
- Key Stocks: Jinheung Corp (hit limit-up on AI power demand), POSCO Steelion.
Biotech & Banking (Sidelined sectors)
- Trend: Biotech and banks remained weak. The slide in large-cap biotech stocks added pressure to the KOSDAQ, while banks suffered from concerns over economic slowdown and lending quality linked to rising oil prices.
- Key Stocks: Major biotech firms, major bank stocks.
Top Movers
Top 3 Gainers
- Jinheung Corp — Limit-up (+29.9%) — Beneficiary of AI power demand.
- POSCO Steelion — Up (+10% range) — Expectations for AI data center material demand.
- TIGER KOSDAQ 150 Leverage — Up — Sustained momentum from 19 days of foreign buying.
Top 3 Losers
- LG Display — Down (–5% range) — High foreign selling pressure; concerns over demand recovery.
- Doosan Enerbility — Down (–4% range) — Foreign selling and project uncertainty.
- Daewoo E&C — Down (–3% range) — Sector-wide weakness due to oil prices and frozen rates.
Global Market Links
1. Fed hawkish hold and oil shock: The US Fed’s decision to keep rates on hold while signaling inflation vigilance, combined with oil price hikes from Middle Eastern tensions, triggered a global flight to safety.
2. SOX index correction: The SOX index dropped for two consecutive days after an 18-day rally, the longest since the dot-com bubble, fueling concerns about the domestic chip sector.
Checklist for Tomorrow
- US April Employment Data: Stronger-than-expected data could push the Fed toward a more hawkish stance, increasing risks of further foreign outflows.
- KOSPI 6,500 Support: Watch if 6,500 holds; failure to hold could trigger further adjustments toward the 6,300–6,400 range.
- Big Tech Earnings (Apple, Amazon): Results will determine if AI infrastructure investment expectations remain intact, directly impacting domestic tech stocks.
Investor Action Items
- Monitor foreign flows: Check if foreign investors turn to net buying before 10 AM on the first trading day of May. Manage risk if selling continues for 3+ consecutive days.
- Monitor semiconductor correction: Check for support at the 5-day moving average (MA5) for Samsung and SK Hynix. Avoid chasing rallies until support is confirmed.
- Watch the 1,500 KRW/USD line: If the exchange rate breaches 1,500, consider reducing exposure to domestic-focused stocks with high import costs while monitoring export stocks.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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