On the 21st, the domestic stock market is expected to show mixed trends amid bargain buying following recent sharp declines and cautious sentiment ahead of the earnings report from U.S. tech giant Meta.
According to the Korea Exchange, the KOSPI closed at 5,552.74, down 215.27 points (3.73%) from the previous trading day. On the 20th, the index opened down 34.44 points (0.60%) at 5,733.57 and fell sharply to 5,493.24 (-4.76%) at one point, breaking below the 5,500 mark. However, it slightly recovered in the afternoon, closing above 5,550.
At the close of regular trading, foreign investors sold a net 533.3 billion won, while institutions recorded a net sell of 1.048 trillion won. Individual investors bought a net 898.2 billion won.
Overall trading performance, including after-hours trading, showed little difference, with institutions and foreigners net selling 956.5 billion won and 525.6 billion won, respectively, while individuals and other entities net bought 847.5 billion won and 631 billion won.
However, the influx of foreign investment is a positive sign. Foreigners have increased their net buying of Samsung Electronics, starting with 198.9 billion won on the 16th, followed by 270.8 billion won on the 19th and 383.5 billion won on the 20th. In contrast, they have continued to sell SK Hynix.
Domestically, AI full-stack company Ellice saw its stock drop more than 30% on its first day of trading on the KOSDAQ, reflecting a cooling sentiment towards AI investments. Ellice's stock plummeted 32.04% from its offering price of 90,500 won. Major foreign media outlets reported this as 'AI company IPO failure raises concerns over the end of the AI investment boom.'
The poor performance of Ellice's IPO appears to have impacted the New York stock market overnight. The Dow Jones Industrial Average and the S&P 500 rose by 1.02% and 0.28%, respectively, while the tech-heavy Nasdaq Composite closed down 0.02%.
Seo Sang-young, a managing director at Mirae Asset Securities, stated, "Despite a rebound in the U.S. market led by semiconductor and large tech stocks, the Korean market has sharply declined, and the credit risks of AI infrastructure companies have resurfaced, leading to a mixed start. The sharp drop in Ellice's stock immediately after its IPO has raised concerns about the investment returns and corporate value in the AI sector."
Indicators related to investor sentiment in the Korean stock market are mixed. The MSCI Korea Index ETF fell by 1.65%, while the MSCI Emerging Markets Index ETF rose by 0.02%.
The Philadelphia Semiconductor Index fell by 0.29%, but the Russell 2000 Index rose by 1.65%, and the Dow Transportation Index increased by 0.94%. KOSPI 200 night futures rose by 1.84%.
The domestic stock market is likely to see a clash between bargain buying following recent sharp declines and cautious sentiment ahead of major global AI events. Scheduled for today at 6 p.m. Korean time is NVIDIA CEO Jensen Huang's keynote speech at GTC, followed by Meta's earnings report early tomorrow morning.
A positive note comes from SpaceX's earnings exceeding expectations and Elon Musk's comments on AI investment. SpaceX reported a 161% increase in third-quarter revenue year-over-year, achieving profitability, and Musk stated during a conference call that demand for AI computing significantly exceeds supply.
* This article has been translated by AI.
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