The KOSPI index plunged on the 22nd, falling into the 5,500 range. Amidst persistent peak-out (top divergence) concerns surrounding artificial intelligence (AI) investment and rising tightening worries, foreign investors and institutional investors engaged in simultaneous selling.
On this day, the KOSPI index closed at 5,533.77, down 201.89 points (3.52%) from the previous trading session. The index temporarily fell to 5,485.98 during intraday trading, giving back the 5,500 line.
Based on Korea Exchange and Nexttrade data, retail investors made net purchases worth 1.363 trillion won, while institutional investors sold a net amount of 683.3 billion won, and foreign investors sold a net amount of 399.1 billion won.
The two major semiconductor stocks exerted downward pressure on the index in unison. In regular trading, Samsung Electronics closed at 214,500 won, down 9,000 won (4.03%), and SK Hynix closed at 1,223,000 won, down 71,000 won (5.49%).
LG Energy Solution fell in the 5th% range, SK Square and Samsung Biologics in the 3rd% range, Hyundai Motor in the 2nd% range, and Samsung Electric, KB Financial Group, and Samsung Life Insurance recorded weakness in the 1st% range. Samsung C&T was slightly down.
Lee Kyung-min, a researcher at Daishin Securities, stated, "We judge that Meta's and Tesla's earnings overnight did not provide the market with the same sense of relief as previously provided by SpaceX and Super Micro." He added, "With SK Hynix's share buyback ending the previous day, supply-demand buffering capacity was further weakened. Despite the net selling scale by foreign investors and institutional investors not being large, the index decline expanded, confirming vulnerable supply-demand conditions."
The researcher said, "Concerns over the expansion of military conflict were highlighted as the United States ordered the withdrawal of non-essential diplomatic personnel stationed in Saudi Arabia." He continued, "Bank of Korea Governor Shin Hyun-song diagnosed at the Monetary Policy Board on this day that domestic and international uncertainties are high, including the Middle East situation, monetary policies of major countries, U.S. midterm elections, and AI industry trends, amid continuing high growth and inflationary pressures."
By sector, KOSPI medical precision, chemicals, electrical electronics, and manufacturing fell in the 4th% range; machinery equipment and metals in the 3rd% range; pharmaceuticals, transportation and warehousing, securities, transportation equipment, parts, and telecommunications in the 2nd% range; and financial services, entertainment and culture, and textiles and apparel in the 1st% range. General services were up in the 1st% range.
The KOSDAQ market also failed to avoid a sharp decline. The index closed at 764.10, down 28.66 points (3.62%) from the previous day. Retail investors made net purchases worth 257.6 billion won, while foreign investors sold a net amount of 156.5 billion won, and institutional investors sold a net amount of 104.6 billion won.
All top 10 stocks by market capitalization declined. In particular, EcoPro BM fell in the 9th% range, Jusung Engineering in the 8th% range, Wonik IPS and EcoPro in the 7th% range, and Samchundang Pharmaceutical in the 5th% range, widening their declines. Lino Industrial and Iotech were down in the 4th% range, Alteogen in the 3rd% range, and HLB and RAINBOW Robotics showed weakness in the 2nd% range.
By sector, KOSDAQ financial services and machinery equipment fell in the 5th% range; non-metals, electrical electronics, and manufacturing in the 4th% range; publishing, chemicals, general services, and pharmaceuticals in the 3rd% range; medical precision, textiles and apparel, distribution, and metals in the 2nd% range; and paper and wood, transportation equipment, telecommunications, and food and tobacco recorded weakness in the 1st% range. Construction was up in the 1st% range.
On this day, the won/dollar exchange rate closed at 1,324.2 won for Seoul foreign exchange market daytime trading, down 1.0 won from the previous day.
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