The KOSPI closed down more than 1% as foreign investors sold off shares amid concerns over artificial intelligence (AI) investments. With major events such as the October Federal Open Market Committee (FOMC) meeting, key corporate earnings reports, and the U.S. midterm elections approaching, investor sentiment remained cautious. The KOSDAQ index dropped over 3%, driven by weakness in biotechnology, secondary battery, and semiconductor stocks.
On October 26, the Korea Exchange reported that the KOSPI fell by 80.83 points (1.46%) to finish at 5469.47.
In the securities market, foreign investors sold a net 754.5 billion won. In contrast, institutional and individual investors bought a net 605.3 billion won and 106 billion won, respectively.
Most large-cap stocks declined. Samsung Electronics fell 1.16%, SK Hynix dropped 0.16%, SK Square decreased by 0.77%, LG Energy Solution was down 2.09%, Samsung Electro-Mechanics fell 0.36%, Samsung Biologics dropped 0.95%, Hyundai Motor declined 2.54%, and KB Financial Group fell 3.79%.
The KOSDAQ index closed at 727.21, down 24.48 points (3.26%) from the previous trading day.
In the KOSDAQ market, institutions sold a net 131.8 billion won, while individuals and foreigners bought a net 92 billion won and 31.5 billion won, respectively.
All major stocks in the KOSDAQ also fell. Alteogen dropped 2.67%, EcoPro fell 4.13%, EcoPro BM decreased by 3.45%, JUSUNG Engineering dropped 6.84%, Rainbow Robotics fell 1.42%, HLB decreased by 5.65%, and IOTechniques dropped 6.19%.
Market analysts noted that the cautious sentiment ahead of major events and concerns over the sustainability and profitability of AI investments limited the upward momentum of the domestic stock market. Additional tightening fears due to strong U.S. manufacturing data and rising international oil prices amid military tensions in the Middle East were also cited as burdens on the market.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The KOSPI is exploring direction in the low 5500s ahead of major events. With the October FOMC meeting, key corporate earnings reports, and the U.S. midterm elections on the horizon, cautious sentiment prevails over hasty bargain hunting or panic selling."
He added, "Concerns over the sustainability and profitability of AI investments remain unresolved, leading to a lack of full recovery in AI investment sentiment domestically, resulting in differentiated trends among stocks. As cautious sentiment deepens ahead of major events, the influx of aggressive bargain buying and the rebound potential of the stock market are limited."
* This article has been translated by AI.
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