BlockBeats News, July 20th, according to South Korean media hankyung, today the South Korea KOSPI index fell by 4.46%, dropping below 6500 points since the end of April. In terms of fund flows, institutions saw a significant net sell-off of 920 billion Korean won, while individuals and foreigners recorded net purchases of approximately 350 billion and 510 billion Korean won, respectively. The selling pressure was mainly focused on semiconductor stocks, impacted by leveraged products, derivatives, and algorithmic trading.

The media conducted interviews with 18 heads of research centers at brokerage firms, half of whom (9 individuals) predicted that the downside support level for the South Korea KOSPI would be between 6000 and 6500 points. Another 4 individuals believe the support level will be between 6500 and 7000 points.

However, some opinions suggest that the market bottom could be even lower. Some brokerages believe the downside could extend as low as 4600 points, while KB Securities predicts that, in a worst-case scenario, the 6-month downside support level could drop to 4500 points.

Regarding the main reasons for the adjustment, 10 research heads identified concerns about the peak of the semiconductor boom (AI investment sustainability, memory demand uncertainty) as the primary factor, while 7 others believed that the leverage factor cannot be ignored.

Furthermore, 6 brokerages (including Daishin, Samsung, Hana, IBK, SK, KB) anticipate a possible rebound within July, but they find it challenging to replicate the strong performance of the first half of the year.