The KOSPI index fell below 6900 on the morning of September 28 due to large-scale selling by foreign and institutional investors. The decline was exacerbated by a more than 4% drop in major semiconductor stocks, including Samsung Electronics and SK Hynix, amid ongoing concerns over rising U.S. long-term Treasury yields. In contrast, the KOSDAQ index showed gains, driven by strong performance in bio stocks, particularly HLB.
According to the Korea Exchange, as of 11:36 a.m., the KOSPI was down 168.18 points (2.38%) at 6912.74. After reaching a high of 7065.90 during the session, the index fell to 6902.63 as foreign selling intensified.
In the securities market, foreign and institutional investors sold a net 1.4457 trillion won and 604.1 billion won, respectively. Meanwhile, individual investors bought a net 1.345 trillion won. Program trading also recorded a net sell of 904.4 billion won.
Among the top market capitalization stocks, semiconductor shares were notably weak. Samsung Electronics traded down 4.47% at 272,750 won, while SK Hynix fell 4.62% to 1,776,000 won. Other stocks such as Samsung Electronics preferred shares (-5.23%), SK Square (-7.73%), and Samsung Electro-Mechanics (-1.00%) also experienced declines.
On the other hand, LG Energy Solution rose 2.56% to 360,500 won. Samsung Biologics (1.76%), KB Financial (0.58%), and Hyundai Motor (0.28%) also showed upward trends.
Despite a rise in the New York stock market driven by strong performance in AI-related technology stocks, the surge in U.S. long-term interest rates has pressured investor sentiment towards domestic semiconductor stocks. The yield on the U.S. 10-year Treasury note reached 5.196% on September 25, the highest level since 2007, following robust economic indicators and concerns over further interest rate hikes by the Federal Reserve.
Earlier in the day, the KOSPI was trading around the 7050 level. At 9:07 a.m., Samsung Electronics was down 0.18% and SK Hynix was down 1.93%, but as foreign selling increased, the declines accelerated.
The KOSDAQ index, however, moved in the opposite direction. At the same time, the KOSDAQ index was up 4.89 points (0.58%) at 849.37, having reached a high of 861.15 before giving back some gains.
In the KOSDAQ market, foreign and institutional investors bought a net 46.9 billion won and 3.9 billion won, respectively, while individuals sold a net 49.3 billion won. Among the top market capitalization stocks, Alteogen (1.60%), EcoPro (1.12%), and EcoPro BM (2.48%) saw gains. HLB surged 29.95% to 39,700 won, hitting the upper limit after its U.S. subsidiary received FDA approval for a new bile duct cancer drug.
Conversely, semiconductor equipment stocks were weak, with Wonik IPS down 5.31%, and companies like Rino Technology (-2.96%) and IOTech (-1.97%) also declining. Rainbow Robotics fell 1.62%.
Market analysts believe that the competition between rising U.S. long-term interest rates and AI momentum will determine market direction in the near term. Han Ji-young, a researcher at Kiwoom Securities, stated, "This week, the stock market will face uncertainties surrounding the rise in U.S. long-term interest rates, but the recovery of leading AI infrastructure stocks, including semiconductors, will provide upward momentum for the market."
He added, "The volatility that may arise from the convergence of major events such as Micron's earnings, exports, and employment data later in the week could present opportunities for increasing stock holdings."
* This article has been translated by AI.
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