The KOSPI index fell more than 3%, pushed down to the 6600 level due to simultaneous selling by foreign and institutional investors. The decline followed the release of the U.S. Consumer Price Index (CPI) for August, which heightened expectations for a Federal Reserve interest rate hike, compounded by rising international oil prices and concerns over the pace of artificial intelligence (AI) development.
On September 14, the Korea Exchange reported that the KOSPI closed at 6684.37, down 225.54 points (3.26%) from the previous trading day.
The index opened at 6692.61, down 217.30 points (3.14%), and expanded its losses early in the session. At one point, it dropped to 6654.82, marking a 3.69% decline, but later reduced some of its losses. However, heavy selling from foreign and institutional investors continued, leading to a close below the 6600 mark.
In the securities market, foreign and institutional investors sold a net 39.129 trillion won and 17.118 trillion won, respectively, totaling 56.247 trillion won in net selling. Meanwhile, individual investors purchased a net 41.469 trillion won, absorbing the selling pressure.
The domestic stock market faced pressure from rising interest rates and oil prices. The U.S. core CPI for August rose 0.3% from the previous month, exceeding market expectations of 0.2%, significantly increasing the likelihood of a rate hike at the September Federal Open Market Committee (FOMC) meeting. As expectations for a rate increase strengthened, the yield on 10-year U.S. Treasury bonds touched 5% during the session.
International oil prices also rose. Following the postponement of a meeting regarding navigation in the Strait of Hormuz and news of a suspension of operations on Saudi Arabia's east-west oil pipeline, Brent crude prices surpassed $108.
Additionally, concerns over the pace of AI development have dampened investor sentiment in the semiconductor sector. Dario Amodei, CEO of Anthropic, suggested that the pace of AI model improvements should be slowed, a sentiment echoed by Elon Musk, CEO of Tesla, and Sam Altman, CEO of OpenAI, raising fears of a slowdown in the AI investment cycle.
Most major stocks fell, including Samsung Electronics (-4.05%), SK Hynix (-6.35%), SK Square (-8.17%), Samsung Electro-Mechanics (-4.50%), LG Energy Solution (-2.36%), Hyundai Motor (-2.88%), and Samsung Life Insurance (-3.09%). In contrast, Samsung Biologics (0.35%) and KB Financial (2.08%) saw gains.
Notably, semiconductor stocks led the decline, reflecting concerns over reduced investment in the sector due to the easing of AI development competition. In addition to SK Hynix and Samsung Electronics, SK Square, a value stock, also experienced significant drops.
The KOSDAQ index closed at 806.79, down 13.85 points (1.69%) from the previous trading day.
In the KOSDAQ market, foreign and institutional investors sold a net 1.231 trillion won and 356 billion won, respectively, while individual investors bought a net 1.514 trillion won.
Among the top market capitalization stocks, Alteogen (-2.99%), EcoPro (-3.44%), EcoPro BM (-5.80%), JUSUNG Engineering (-1.44%), Rainbow Robotics (-3.56%), Wonik IPS (-0.18%), IOTech (-3.93%), and Rino Industry (-1.96%) all fell.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The key factor behind today's sharp decline is the controversy over the pace of AI development. It is important to interpret this not as a halt in AI development but as a call to adjust the speed and ensure safety verification. We should be cautious about interpreting this as a slowdown in the investment cycle."
He added, "With HBM sold out and SK Hynix and Samsung Electronics holding 83% of the market, we believe this decline is driven more by sentiment than by actual performance. Adjusting the pace of development allows time to transition existing facilities into profitability, and investments in semiconductors, power, and data centers will not decrease."
The researcher identified the KOSPI's ability to maintain support at the 6600 level as a potential factor that could change market sentiment. He noted, "If the meeting regarding the Strait of Hormuz resumes and oil prices rebound, it could provide a sense of relief for the market. In the September FOMC, the dot plot and comments from the chair, as well as the response of the 30-year bond yield, will be more important than the rate hike itself, which has already been largely priced in."
* This article has been translated by AI.
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