The KOSPI index plunged more than 5% in early trading, falling below the 8000 mark. Concerns over a slowdown in AI investment cycles were heightened after news broke overnight about Meta's plans to enter the cloud business. This news, coupled with significant drops in semiconductor stocks like Micron and SanDisk, which fell over 10%, dealt a severe blow to the domestic market.
Market analysts are worried that if Meta begins selling its substantial AI computing power externally, it could dampen future investments in AI infrastructure and reduce demand for memory products. This has shaken expectations for an improvement in the semiconductor sector, which had been buoyed by the anticipated expansion of AI investments.
According to the Korea Exchange, as of 9:10 a.m., the KOSPI was trading at 7872.89, down 430.52 points (5.18%) from the previous trading day. The index opened at 7933.10, down 370.31 points (4.46%), immediately losing the 8000 threshold.
While individual investors purchased a net 804 billion won worth of stocks, foreign and institutional investors sold a net 1.22 trillion won and 403.4 billion won, respectively.
Most of the top market capitalization stocks experienced sharp declines. Samsung Electronics fell 6.52%, SK Hynix dropped 7.11%, SK Square decreased by 9.33%, Samsung Electro-Mechanics was down 8.48%, Samsung Life Insurance fell 8.66%, Samsung C&T dropped 7.03%, Hyundai Motor declined 4.92%, HD Hyundai Heavy Industries fell 3.74%, LG Energy Solution decreased by 1.72%, and Samsung Biologics was down 1.65%.
At the same time, the KOSDAQ index recorded a decline of 37.70 points (4.06%), reaching 891.65. The index opened at 904.53, down 24.82 points (2.67%), and continued to widen its losses.
Individual investors bought a net 19.2 billion won worth of stocks, while foreign and institutional investors sold a net 35 billion won and 15.4 billion won, respectively.
The top stocks by market capitalization on the KOSDAQ also faced significant losses. JUSUNG Engineering fell 10.54%, Wonik IPS dropped 9.54%, Rainbow Robotics decreased by 6.65%, EcoPro BM fell 6.10%, EcoPro was down 3.87%, Rino Technology dropped 3.79%, HLB fell 2.59%, Kolon TissueGene decreased by 2.37%, Alteogen was down 1.40%, and PSK fell 2.84%.
* This article has been translated by AI.
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