The KOSPI index failed to rebound, continuing its decline for the sixth consecutive trading day. Despite a strong start, the index was affected by negative factors including China's next-generation memory development, skepticism surrounding artificial intelligence (AI) investments, and interest rate hikes. Foreign investors continued to exit the market, and individual investors joined the selling trend, barely maintaining the psychological support level of 6,000 points.
According to the Korea Exchange, the KOSPI closed at 6,008.81, down 0.44% from the previous trading day. The index opened at 6,062.08, recovering from the previous day's sharp drop, and briefly rose to 6,190.65 during the session. However, it struggled to maintain its gains as selling pressure from foreign and individual investors increased, dropping to 5,944.65 before a slight recovery at the end of the day due to buying from institutions and financial investors. Foreign investors sold 1.173 trillion won worth of stocks, while individual investors, who had been net buyers for five consecutive days, turned to net selling of 315.9 billion won. Institutions, financial investors, and other corporations recorded net purchases of 803.8 billion won, 516 billion won, and 685.2 billion won, respectively.
Samsung Electronics surged by 4.09% shortly after the market opened but ultimately closed unchanged at 232,000 won. SK Hynix finished down 1.66% at 141,900 won. Most large-cap stocks, including Hanmi Semiconductor (-5.02%), Hyundai Motor (-0.63%), Hanmi Pharmaceutical (-11.37%), SK Square (-0.82%), and HD Hyundai Electric (-3.75%), saw declines compared to the previous trading day. However, LG Energy Solution (2.93%), Samsung SDI (5.54%), Samsung Electro-Mechanics (0.81%), and SK Innovation (3.89%) managed to rebound.
The KOSDAQ also closed lower, finishing at 823.88, down 13.15 points or 1.57%. The KOSDAQ market saw significant declines in major semiconductor stocks, including JUSUNG Engineering (-8.21%), Simtek (-6.71%), and Wonik IPS (-7.29%). In contrast, battery-related stocks such as EcoPro (2.82%), EcoPro BM (2.30%), and LNFP (5.67%) showed relatively strong performance despite the overall downturn.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The KOSPI index initially saw a rebound due to buying pressure following the previous day's sharp decline, but the rise was limited by concerns over rising international oil prices, weak AI momentum, and caution ahead of the U.S. Consumer Price Index (CPI) announcement. Although the scale of foreign net selling has somewhat decreased, the ongoing outflow of funds ultimately led to a complete reversal of gains by the end of the day."
Experts predict that the KOSPI will remain in a bearish trend until concerns over the AI semiconductor bubble in the global market are resolved. Given the Korean stock market's heavy reliance on semiconductors, a slowdown in corporate profit outlooks negatively impacts foreign investment. Additionally, macroeconomic uncertainties such as interest rates, international oil prices, and exchange rates could further exacerbate the situation.
Seo Sang-young, head of research at Mirae Asset Securities, stated, "Concerns over capital procurement in the AI industry among U.S. big tech companies, worries about investment profitability, and heightened geopolitical tensions in the Middle East are increasingly dampening investor sentiment, leading to declines in the U.S. stock market, particularly in memory semiconductor and equipment stocks. The supply instability in the semiconductor sector of the Korean stock market is also expected to persist for the time being."
* This article has been translated by AI.
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