The KOSPI index is declining due to selling by foreign and institutional investors. Analysts attribute the drop to concerns over an AI bubble sparked by OpenAI and escalating tensions in the Middle East following attacks by Houthi rebels in Saudi Arabia.
As of 12:30 p.m. on October 12, the KOSPI was down 170.25 points (2.57%) at 6459.69, having briefly fallen by 208.66 points (3.15%) to 6417.27 earlier in the session before recovering somewhat.
In the securities market, foreign and institutional investors sold a net 1.3554 trillion won and 850 billion won, respectively, while individual investors purchased a net 1.0587 trillion won.
Foreign investors sold 919 billion won worth of SK Hynix and 461.7 billion won of Samsung Electronics. Institutions sold 1.3648 trillion won of Samsung Electronics and 213 billion won of SK Hynix.
Most of the top market capitalization stocks are also in decline, including Samsung Electronics (-2.86%), SK Hynix (-3.15%), SK Square (-3.90%), Samsung Electro-Mechanics (-3.10%), Hyundai Motor (-0.62%), and LG Energy Solution (-0.12%).
At the same time, the KOSDAQ index fell by 35.74 points (4.02%) to 856.41.
In the KOSDAQ market, individual investors bought a net 250.1 billion won, while foreign and institutional investors sold a net 142.7 billion won and 98.8 billion won, respectively.
Foreign investors sold 26.9 billion won of EcoPro and 22.8 billion won of EcoPro BM, while institutions sold 43.1 billion won of Wonik IPS and 35.9 billion won of EoTechnics.
Most of the top KOSDAQ stocks are also experiencing losses, including EcoPro BM (-8.77%), JUSUNG Engineering (-5.79%), Simtech (-6.77%), Wonik IPS (-3.66%), and Rino Technology (-10.92%).
Kim Seok-hwan, a researcher at Mirae Asset Securities, noted, "The top two semiconductor companies (Samsung Electronics and SK Hynix) are showing weakness as they digest concerns over the AI bubble sparked by OpenAI."
* This article has been translated by AI.
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