(Seoul = Yonhap News) Reporter Kwak Yoon-ah = The KOSPI index plunged 3.65% on the 12th, eventually falling to the 6,300 range again after two months.
Despite Samsung Electronics [005930]'s record-breaking performance announcement on the 8th, foreigners continued to 'sell', and KOSPI appeared to be even more sluggish, rather than rebounding.
According to the Korea Exchange, on this day, the KOSPI index closed at 6,384.24, down 241.69 points (3.65%) from the previous day.
The index opened at 6,578.17, down 47.76 points (0.72%) from the previous day, and then immediately increased its decline, dropping the 6,500 and 6,400 points in turn.
It has been about two months since the KOSPI index closed at the 6,300 level based on the closing price on August 11 (6,345.53).
The decline rate is the highest since the 2nd of last month (-3.99%).
The KOSDAQ index also closed at 849.19, down 43.08 points (4.83%) from the previous day. This is the highest decline rate since July 29 (-6.12%), when market volatility was relatively high.
Major semiconductor stocks such as Samsung Electronics (-4.39%) and SK Hynix [000660] (-4.52%) fell sharply, dragging down the KOSPI.
In addition, the blue light also turned on for major stocks with top market capitalization, such as SK Square [402340] (-6.29%), Samsung Electro-Mechanics [009150] (-3.82%), and Hyundai Motor Company [005380] (-1.39%).
Secondary battery-related stocks such as LG Energy Solution [373220] (-0.75%) and Samsung SDI [006400] (-1.41%), which had performed well in anticipation of increased demand for energy storage systems (ESS) despite the recent sluggish index, also closed weakly on the day.
As foreigners showed a selling advantage again on this day, the index appears to have lost its strength.
Foreigners sold net 2.025 trillion won in the stock market. Selling advantage for 5 consecutive trading days.
Institutions sold net 110.7 billion won, and individuals net bought 1.4674 trillion won.
In the KOSPI Electrical and Electronics sector, which includes semiconductor stocks, foreigners also had a selling advantage of 1.7057 trillion won. Institutions also sold net KRW 578.7 billion, and individuals net bought KRW 1.6313 trillion.
SK Hynix and Samsung Electronics ranked first and second among the top foreign net sellers on this day.
Foreigners net sold SK Hynix for 1.0431 trillion won and Samsung Electronics for 533.1 billion won.
Kim Seok-hwan, a researcher at Mirae Asset Securities, said, “The top 2 semiconductors (Samsung Electronics, SK Hynix) showed weakness as they digested the ‘bubble theory’ caused by Open AI.”
When news broke on the 8th (local time) that OpenAI's annual sales were $20 billion less than initially reported, the U.S. stock market showed weakness, with the Nasdaq Composite Index falling 1.25%.
However, it was found that this was caused by a difference in the accounting method of calculating sales rather than a decrease in actual sales, and considering that the Nasdaq index rebounded 0.64% on the 9th the next day, it seems difficult to explain KOSPI's sluggish performance solely with the theory of a bubble caused by Open AI.
It is also painful to note that the index actually fell even after the stock market's favorable reviews of Samsung Electronics' third quarter earnings announcement on the 8th.
This suggests that investors comprehensively want to resolve doubts about the sustainability of the semiconductor super cycle and confirm the competitiveness of high-bandwidth memory (HBM) beyond simply performance itself.
Considering the market's heightened expectations for semiconductor companies, it appears that it will take some time for the KOSPI atmosphere to change.
It is expected that the index will find an opportunity to rebound only when the performance and outlook of domestic and foreign semiconductor companies are specifically supported, such as ASML's performance announcement on the 14th and TSMC's performance announcement on the 15th, followed by SK Hynix's earnings announcement on the 27th and Samsung Electronics conference call on the 29th.
Lee Jae-won, a researcher at Yuanta Securities, said, "Korea is highly dependent on memory-centered performance growth, while the United States has leading companies in AI services and infrastructure as a whole. Even though (the two countries) have something in common in benefiting from the expansion of global AI investment, the profit structure of each company and its position in the value chain are different."
He continued, “It is not the stage to interpret this as a weakening of the competitiveness of Korean semiconductors,” but added, “Additional verification is needed, including changes in global asset allocation, relative valuations of Korean semiconductors, and differences in expectations for future profit growth.”
In the short term, it is necessary to check the US September Consumer Price Index (CPI), which will be announced on the night of the 14th, and the corresponding changes in market interest rates.
Kim Dae-jun, a researcher at Korea Investment & Securities, said, "A meaningful turnaround will only be possible if the U.S. September CPI and Producer Price Index (PPI) scheduled for this week fall below market expectations. It is difficult to expect a trend rebound in the index until the indicators are confirmed, and a thorough response to the range is inevitable."
