Despite concerns over a potential 'Black Monday' triggered by disappointing earnings from major global tech companies, the financial markets managed to stabilize. Following a shocking 28.58% drop in Intel's stock, analysts anticipated significant losses for semiconductor firms. However, the KOSPI index rose by over 2%, buoyed by rebounds from Samsung Electronics and SK Hynix.
According to the Korea Exchange (KRX), the KOSPI closed at 5,859.08, up 128.34 points (2.24%) from the previous trading day. The index opened lower at 5,637.77, down 1.62%, and fluctuated around 1% before gaining momentum in the afternoon. It briefly surpassed the 5,900 mark, reaching 5,907.21, before settling slightly lower.
Samsung Electronics, a leading player in the semiconductor sector, closed at 229,000 won, up 1.78%, while SK Hynix finished at 1,472,000 won, a 3.82% increase. Most major stocks, including SK Square (up 5.91%), Samsung Electronics Preferred (up 1.67%), Hanwha Aerospace (up 6.32%), and Hanmi Semiconductor (up 4.93%), also ended the day higher.
Companies benefiting from export opportunities, such as Hanwha Ocean (up 9.80%) and Hyosung Heavy Industries (up 13.32%), along with those identified as low PBR (price-to-book ratio) stocks like Hyundai Steel (up 12.61%) and E-Mart (up 7.09%), also saw significant gains.
In the securities market, institutional investors absorbed all the selling pressure from individuals. Retail investors sold a net 1.3468 trillion won, while foreign investors sold 370.4 billion won. Institutions, on the other hand, purchased a net 1.2331 trillion won, with financial investors contributing 577.7 billion won, pension funds 169.9 billion won, other corporations 487.8 billion won, and private equity funds 166 billion won.
The KOSDAQ index also rose, closing at 734.34, up 9.95 points (1.37%). In this market, retail and foreign investors sold a net 26 billion won and 32.2 billion won, respectively, while institutions bought a net 62.3 billion won. Major stocks like EcoPro (up 2.22%), EcoPro BM (up 1.32%), and HLB (up 4.25%) also finished higher.
Market analysts suggest that the prolonged downturn in the stock market may be nearing its end, with a focus on distinguishing between strong and weak companies. The current KOSPI forward price-to-earnings ratio (PER) stands at 4.14, the lowest since 2001 (4.74). Analysts believe that if uncertainties surrounding the U.S. midterm elections are resolved and interest rates stabilize, further declines may be limited.
Lee Jin-woo, a researcher at Meritz Securities, stated, "Intel's sharp decline reflects market concerns that semiconductor prices have risen significantly enough to dampen demand in the PC sector. Worries about Samsung Electronics and SK Hynix have already been factored in, and as long as the direction of U.S. interest rates and midterm election results do not exacerbate existing concerns, downward pressure should remain limited."
Hwang Seung-taek, a researcher at Hana Securities, noted, "Market noise regarding AI profitability will continue to emerge, and we can expect a repeated process of monitoring and verifying market supply and demand during corporate earnings conference calls."
Lee Kyung-min, a researcher at Daishin Securities, commented, "The volatility triggered by the AI cash flow shock in the U.S. has coincided with a supply gap in the KOSPI market, leading to significant adjustments. However, we are currently in a phase where short-term corrections are concluding." Seo Sang-young, an executive at Mirae Asset Securities, added, "The debate over AI investment costs and returns among U.S. tech giants highlights that only companies capable of quickly converting investments into free cash flow will survive. As the market begins to evaluate the financial structure and credit of AI infrastructure, increased volatility among related stocks is inevitable."
* This article has been translated by AI.
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