Following a significant drop in the KOSPI index, attention turns to whether it can rebound on the 14th. The return of foreign investors, who have been selling off shares, is expected to influence the index's direction.
On the 13th, the KOSPI closed at 6,035.35, down 348.89 points (5.46%) from the previous trading day. The index opened at 6,186.08, down 198.16 points (3.10%), and continued to decline throughout the morning. 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.
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 chip maker Changxin Memory Technologies (CXMT). Reports indicate that CXMT has made progress in DRAM technology development and plans to launch next-generation server products within the year, dampening investor sentiment.
In the securities market, foreign investors continued their selling streak for six consecutive trading days, resulting in a net sell of 4.5259 trillion won. Meanwhile, individual and institutional investors bought 2.2271 trillion won and 1.6902 trillion won, respectively, helping to prevent further declines in the index.
The recent downturn in the New York stock market could also play a role. On the 13th (local time), the Dow Jones Industrial Average closed down 180.45 points (0.35%) at 51,670.10. The S&P 500 fell 0.02% to 7,805.45, while the Nasdaq Composite dropped 0.15% to 27,204.38.
Semiconductor stocks led the decline, with Micron Technology down 3.62% and SK Hynix American Depositary Receipts (ADRs) falling 3.19%. Western Digital also decreased by 1.61%, and the Philadelphia Semiconductor Index fell by 0.2%.
As of 8:30 a.m. on the 14th, KOSPI representative stocks showed signs of recovery in pre-market trading. Samsung Electronics rose by 1.5%, SK Square by 2.5%, SK Hynix by 1.8%, and Samsung Electro-Mechanics by 3.0%.
Seo Sang-young, an executive at Mirae Asset Securities, stated, "The supply and demand instability in the semiconductor sector is expected to persist for the time being. However, the recent uptick in AI semiconductor companies in the U.S. market and the steady performance of major AI demand companies, including hyperscalers, could stimulate buying interest despite concerns in the related industry."
Han Ji-young, a researcher at Kiwoom Securities, projected, "The domestic market is likely to attempt a rebound today, supported by the anticipation surrounding the U.S. September Consumer Price Index (CPI) announcement and the recent influx of bargain-hunting amid the five consecutive days of sharp declines, despite uncertainties in the semiconductor sector stemming from China."
On the 13th, the KOSPI closed at 6,035.35, down 348.89 points (5.46%) from the previous trading day. The index opened at 6,186.08, down 198.16 points (3.10%), and continued to decline throughout the morning. 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.
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 chip maker Changxin Memory Technologies (CXMT). Reports indicate that CXMT has made progress in DRAM technology development and plans to launch next-generation server products within the year, dampening investor sentiment.
In the securities market, foreign investors continued their selling streak for six consecutive trading days, resulting in a net sell of 4.5259 trillion won. Meanwhile, individual and institutional investors bought 2.2271 trillion won and 1.6902 trillion won, respectively, helping to prevent further declines in the index.
The recent downturn in the New York stock market could also play a role. On the 13th (local time), the Dow Jones Industrial Average closed down 180.45 points (0.35%) at 51,670.10. The S&P 500 fell 0.02% to 7,805.45, while the Nasdaq Composite dropped 0.15% to 27,204.38.
Semiconductor stocks led the decline, with Micron Technology down 3.62% and SK Hynix American Depositary Receipts (ADRs) falling 3.19%. Western Digital also decreased by 1.61%, and the Philadelphia Semiconductor Index fell by 0.2%.
As of 8:30 a.m. on the 14th, KOSPI representative stocks showed signs of recovery in pre-market trading. Samsung Electronics rose by 1.5%, SK Square by 2.5%, SK Hynix by 1.8%, and Samsung Electro-Mechanics by 3.0%.
Seo Sang-young, an executive at Mirae Asset Securities, stated, "The supply and demand instability in the semiconductor sector is expected to persist for the time being. However, the recent uptick in AI semiconductor companies in the U.S. market and the steady performance of major AI demand companies, including hyperscalers, could stimulate buying interest despite concerns in the related industry."
Han Ji-young, a researcher at Kiwoom Securities, projected, "The domestic market is likely to attempt a rebound today, supported by the anticipation surrounding the U.S. September Consumer Price Index (CPI) announcement and the recent influx of bargain-hunting amid the five consecutive days of sharp declines, despite uncertainties in the semiconductor sector stemming from China."
* This article has been translated by AI.
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