Despite concerns over the performance of global tech giants amid increasing investments in artificial intelligence (AI), South Korea's stock market successfully reduced its initial losses and rebounded on November 2.
According to the Korea Exchange, the KOSPI index was trading at 5,771.11, up 0.72% from the previous session as of 10:30 a.m. The index opened down 1.62%, starting at 5,637.77.
After a lower opening, the KOSPI fluctuated within a 1% range throughout the morning, peaking at 5,820.35 and currently hovering between 5,770 and 5,780.
As of now, Samsung Electronics is trading at 224,000 won, down 0.44% from the previous day. In contrast, SK Hynix has recovered from earlier losses, trading at 1,445,000 won, up 1.90%.
Among large-cap stocks, SK Square is up 1.56% at 910,500 won, Hanmi Semiconductor has risen 3.45% to 189,000 won, Hanwha Aerospace is up 3.88% at 723,000 won, and Hyundai Motor is trading at 288,000 won, up 2.13%.
In the KOSPI market, individual and foreign investors are continuing to sell, with net sales of 381.7 billion won and 297.5 billion won, respectively. Meanwhile, institutional investors are net buyers, purchasing 585.2 billion won.
The KOSPI's initial decline is attributed to a sharp drop in semiconductor stocks on the U.S. market on October 30. On November 1, when the South Korean market was closed, Intel's stock plummeted 28.58% after its fourth-quarter revenue fell short of market expectations due to declining PC demand, marking the largest single-day drop since July 1974.
This led to fears of a 'Black Monday' scenario before the market opened. However, the KOSPI has managed to reverse its trend and show resilience.
The KOSDAQ index is also up 0.72%, trading at 729.58. In the KOSDAQ market, individual and institutional investors are net buyers, purchasing 37.2 billion won and 10.4 billion won, while foreign investors are net sellers, offloading 43.7 billion won.
Market analysts suggest that the downward phase that had instilled fear among investors may be nearing its end. Lee Kyung-min, a researcher at Daishin Securities, stated, "It is fortunate that the KOSPI has shown a rebound despite concerns following the U.S. market's sharp decline. The KOSPI's forward price-to-earnings ratio is currently at 4.14, indicating that if it continues to fluctuate around the 5,500 level, it presents an opportunity for increased investment. Even if it drops to 5,200, it remains a period for steady accumulation."
He added, "We believe we are in the process of concluding a short-term correction phase. The extreme of fear could mark a new starting point for the market."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.