The KOSPI is expected to open lower on July 28, following a downturn in U.S. technology stocks. Concerns over intensified competition due to China's semiconductor technology development and the stock market listing of Changxin Memory Technologies (CXMT) may dampen investor sentiment, particularly in the domestic semiconductor sector.
On July 27, the Dow Jones Industrial Average and the S&P 500 rose by 0.51% and 0.02%, respectively, while the Nasdaq Composite fell by 0.18%.
Reports that China has begun developing deep ultraviolet (DUV) lithography equipment for semiconductor manufacturing have heightened global competition concerns. As a result, ASML's stock plummeted by 5.8%, and major semiconductor companies like NVIDIA (-4.99%) and Micron (-2.25%) also experienced declines. The Philadelphia Semiconductor Index dropped by 2.23%.
The domestic market is anticipated to face downward pressure due to the weak performance of U.S. tech stocks overnight. Additionally, the listing of CXMT raises fears of increased competition in the memory semiconductor market, which has been dominated by Samsung Electronics, SK Hynix, and Micron.
Han Ji-young, a researcher at Kiwoom Securities, noted, "Since July, semiconductor stocks have undergone significant corrections, leading to weakened investor sentiment, making them sensitive to news about China's DUV equipment production."
As of 8:11 a.m., shares of Samsung Electronics were trading at 240,000 won, down 5.5% from the previous session, while SK Hynix fell 7.5% to 1,679,000 won.
However, some analysts suggest that market volatility is gradually easing. One researcher stated, "As time goes on, the amplitude of volatility appears to be lessening, indicating that the KOSPI 200 volatility index is entering a phase of stabilization, which may signal that the domestic abnormal volatility is passing its peak."
They also expressed concerns that the 465% surge in CXMT's stock price following its listing on the ChiNext board could weaken the supply-demand dynamics of domestic semiconductor stocks, but noted that CXMT is not yet a stock that foreign investors can freely trade under the Stock Connect program, suggesting limited potential for actual supply-demand exits.
* This article has been translated by AI.
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