On October 22, the South Korean stock market is expected to experience significant volatility as strong earnings from major tech companies like Nvidia, Meta, Tesla, and SpaceX clash with profit-taking following the KOSPI's sharp rise the previous day.
According to the Korea Exchange, the KOSPI index closed at 5,735.66, up 182.92 points (3.29%) from the previous trading day. On October 21, the KOSPI opened at 5,666.34, rising by 113.60 points (2.05%) and reaching a peak of 5,816.43 during the day, before closing slightly lower around the 5,700 mark. The KOSDAQ also finished higher, closing at 792.76, up 10.79 points (1.38%) from the prior day.
At the close of regular trading, individuals and institutions sold a net 1.13 trillion won and 72.2 billion won, respectively, while foreign investors bought a net 660 billion won. Notably, foreign investors purchased 727.7 billion won worth of Samsung Electronics shares, marking four consecutive days of net buying, while also buying 279.9 billion won of SK Hynix shares, which turned net buying for the first time in 19 trading days.
Fueled by foreign buying, Samsung Electronics closed at 223,500 won, up 5.67%, while SK Hynix finished at 1,294,000 won, up 5.81%. Most of the top market capitalization stocks, including Samsung Electronics preferred shares (up 3.80%), SK Square (up 5.13%), Samsung Electro-Mechanics (up 1.13%), and Samsung Biologics (up 1.87%), also closed higher.
In the KOSDAQ, foreign investors sold 172 billion won, while individuals and institutions bought 51.6 billion won and 104.7 billion won, respectively. Most of the top KOSDAQ stocks, including EcoPro (up 0.12%), EcoPro BM (up 3.33%), Hanmi Semiconductor (up 1.55%), and Samchundang Pharm (up 3.66%), also finished higher.
Overnight, the New York stock market saw a rebound in technology stocks that had been shaken by concerns over AI investment profitability. The Dow Jones Industrial Average closed up 360.21 points (0.69%) at 52,856.09.
The S&P 500 index rose by 44.60 points (0.58%) to close at 7,757.17, nearing its all-time high recorded earlier this month. The tech-heavy Nasdaq Composite also gained 278.04 points (1.05%), finishing at 26,702.86.
The rise in the New York market was led by Elon Musk's SpaceX and Tesla. SpaceX reported its first profit since going public, and Musk confirmed the possibility of a merger with Tesla, improving investor sentiment.
Nvidia, a leader in AI semiconductors, also contributed to the upward trend, rising by 2.5%. AI server manufacturer Supermicro surged 9.6% after providing a revenue forecast that exceeded expectations due to increased demand for AI platforms.
Despite recent concerns over high interest rates impacting data center construction costs and doubts about AI investment profitability, major companies have demonstrated robust third-quarter earnings, reinforcing the ongoing demand for AI-related products.
Additionally, Jensen Huang, CEO of Nvidia, expressed optimism about AI infrastructure investments during the annual GTC conference in Berlin. He stated that for Europe to benefit from AI and create a true AI ecosystem and economy, AI must be integrated into all end industries, including automotive, finance, and healthcare. He also announced plans to expand production capacity in collaboration with six partners in substrate, packaging, and testing to alleviate AI chip supply bottlenecks.
Domestic market experts predict continued volatility as factors for both upward and downward movements coexist, with profit-taking from the previous day's surge expected to emerge. Han Ji-young, a researcher at Kiwoom Securities, noted that in a thin supply-demand environment, the expansion of real demand for AI, ongoing investment cycles, and concerns over profitability and funding risks are in a delicate balance. He added that while the perception of oversold conditions may lead to price corrections and reduced selling pressure from foreign investors, the sensitivity to AI stocks remains high, suggesting a cautious market.
Seo Sang-young, an executive at Mirae Asset Securities, stated that the market is expected to open lower due to profit-taking from the previous day's gains, but subsequent movements will depend on foreign buying in semiconductor companies and changes in international oil prices, which were among the factors contributing to the strength of the U.S. market.
* This article has been translated by AI.
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