The KOSPI index fell sharply, driven by a decline in major semiconductor stocks, briefly dipping below the 6000 mark. A significant sell-off by foreign investors exacerbated the drop, but the index managed to recover some losses toward the end of the trading session.
On October 13, the Korea Exchange reported that the KOSPI closed at 6035.35, down 348.89 points (5.46%) from the previous trading day. The index opened at 6186.08, down 198.16 points (3.10%), and continued to widen its losses early in the session. At one point, a trading halt was triggered due to program selling, marking the first occurrence of such a halt in the KOSPI market since August.
In the securities market, individual and institutional investors made net purchases of 2.9096 trillion won and 1.7672 trillion won, respectively. In contrast, foreign investors sold a net 5.1532 trillion won, leading to the index's decline.
Most of the top market capitalization stocks experienced losses. Samsung Electronics fell 7.39%, SK Hynix dropped 10.09%, SK Square decreased by 12.91%, Samsung Electro-Mechanics declined 8.34%, Hyundai Motor fell 1.56%, KB Financial dropped 0.25%, and Samsung Life Insurance decreased 4.30%. However, LG Energy Solution rose 3.02%, and Samsung Biologics increased by 0.42%.
The sharp decline in the stock market is attributed to concerns over the competitiveness of the domestic semiconductor industry following news of technological advancements by Chinese memory chipmaker Changxin Memory Technologies (CXMT). Reports indicated that CXMT has made progress in developing DRAM technology and plans to launch next-generation server products within the year, which has dampened investor sentiment.
U.S. markets also saw weakness in semiconductor stocks overnight. The Philadelphia Semiconductor Index fell 2.60%, and U.S. memory chipmaker Micron Technology dropped 3.88%. SK Hynix's American Depositary Receipts (ADRs) fell 4.02%. Major semiconductor companies such as NVIDIA, TSMC, and Broadcom also showed declines of 1.29%, 1.29%, and 1.88%, respectively.
Han Ji-young, a researcher at Kiwoom Securities, commented on the market's decline, stating, "Concerns have been raised about the weakening competitiveness and market share of domestic memory companies following the announcement of CXMT's next-generation server DRAM launch. The anxiety over the technical trend being disrupted by the KOSPI falling below its 200-day moving average has also intensified."
He added, "Amid uncertainties regarding interest rates and earnings, there has been a large-scale adjustment of foreign positions and profit-taking, given that returns remain high compared to the beginning of the year. The temporary supply gap following the end of Samsung Electronics' share buyback program has also contributed to the thin domestic supply environment."
The KOSDAQ index also closed lower, finishing at 837.03, down 12.16 points (1.43%). It opened at 823.69, down 25.50 points (3.00%), but managed to reduce its losses during the session.
In the KOSDAQ market, individuals sold a net 257.9 billion won, while foreign and institutional investors made net purchases of 201.3 billion won and 45.9 billion won, respectively.
Among the top market capitalization stocks in the KOSDAQ, performance was mixed. Alteogen fell 3.02%, EcoPro BM dropped 2.08%, Rainbow Robotics decreased 1.92%, Wonik IPS fell 0.38%, IOTechniques dropped 3.33%, HLB fell 0.90%, and Simtech decreased 2.84%. Conversely, JUSUNG Engineering rose 3.56%, and Rino Industry increased by 1.92%.
* This article has been translated by AI.
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