SK Hynix shares plummet 8% following premrket trade, dragging KOSPI down

South Korea's stock market experienced a significant downturn on the 6th, with the KOSPI index falling as much as 4%, largely driven by a sharp decline in SK Hynix shares. The semiconductor giant's stock plummeted over 8% in early trading, significantly impacting the broader market.

Analysts suggest the sell-off was triggered by a block trade of 11 SK Hynix shares executed at the lower limit price of 11,680,000 won on the newly launched NEXTRADER premrket, which opened just before the main trading session. This event appears to have severely damaged investor sentiment, creating a ripple effect that extended into the main KOSPI and KOSDAQ markets.

The KOSPI, which opened 1.81% lower at 6478.75, initially hovered around a 2% decline before rapidly widening its losses. By 10:01 AM, it had fallen 4.19% to 6321.85. SK Hynix was trading at 1,519,000 won, down 8.93% from the previous day, leading the market's decline.

Investors expressed frustration online, pointing to the premrket trade as the likely cause of the sharp drop. This is not the first time SK Hynix has experienced such a drastic price movement on the premrket; a single share was also traded at the lower limit immediately after the market opened on July 28th.

Other major semiconductor stocks were also affected. Samsung Electronics, another industry heavyweight, saw its shares fall 5.08% to 233,500 won. Related companies like SK Square and Samsung Electro-Mechanics experienced even steeper declines, dropping 10.72% and 10.40%, respectively. The KOSDAQ index, meanwhile, showed more resilience, opening slightly lower and fluctuating around its previous close.