Stock Market Shaken by Semiconductors... KOSPI Falls to 3220 Level

On the Same Day, KOSDAQ Also Closed Lower Despite Earlier Gains

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI fluctuated amid growing concerns over the end of the semiconductor super cycle. Foreign investors sold off more than 1 trillion won, deepening the KOSPI's decline.

On the 11th, the KOSPI closed at 3,220.62, down 0.70% (22.57 points) from the previous trading day. At 3:18 p.m. that day, the KOSPI even dropped to 3,217.65.

The domestic stock market showed mixed trends due to concerns over the semiconductor industry's sluggishness. Market research firm TrendForce forecasted that DRAM prices could fall by up to 5% in the fourth quarter due to excessive inventory by PC manufacturers. Accordingly, on the 10th (local time), U.S. semiconductor company Micron Technology closed at $75.91, down 5.36% from the previous day. The Philadelphia Semiconductor Index also plunged 1.20% that day.

Park Kwang-nam, a researcher at Mirae Asset Securities, analyzed, "Although the number of sectors rising compared to the previous day increased, concerns over DRAM price declines negatively affected semiconductor-related stocks such as Samsung Electronics and SK Hynix, causing the index to fall. The shrinking investment sentiment toward large electrical and electronic stocks and the expansion of foreign selling volume were also burdensome factors."

Individual investors bought more than 1 trillion won, but foreign and institutional selling was strong. Foreigners and institutions net sold 1.7756 trillion won and 191.7 billion won, respectively. Individuals net bought 1.7756 trillion won.

Many sector indices showed weakness. The electrical and electronics sector had the largest decline at 2.33%. This was followed by services (-1.52%), electric and gas utilities (-1.22%), non-metallic minerals (-1.11%), food and beverages (-1.07%), and manufacturing (-0.94%). On the upside were banks (3.69%), medical precision instruments (3.33%), pharmaceuticals (2.31%), steel and metals (1.30%), and transportation and warehousing (1.24%).

Among the top 10 market capitalization stocks, many declined. SK Hynix had the largest drop at 6.22%, followed by Samsung Electronics (-2.12%), Kakao (-1.71%), NAVER (-0.34%), Hyundai Motor (-0.23%), and LG Chem (-0.12%). Celltrion (4.81%), KakaoBank (4.20%), Samsung Biologics (2.96%), and Samsung SDI (0.25%) rose.

The KOSDAQ closed at 1,051.92, down 0.01% (0.15 points) from the previous trading day. The KOSDAQ rose to 1,057.03 earlier but turned downward after 3:10 p.m.

Institutional selling led to the index decline. Individuals and foreigners net bought 45.1 billion won and 53.3 billion won, respectively. Institutions net sold 74.1 billion won.

Many sectors showed weakness. The semiconductor sector had the largest drop at 1.99%, followed by machinery and equipment (-1.81%), broadcasting services (-1.65%), telecommunications broadcasting services (-1.62%), and telecommunications services (-1.55%). On the upside were distribution (2.85%), pharmaceuticals (2.07%), internet (1.98%), and transportation (1.80%).

The top 10 market capitalization stocks showed mixed performances. Celltrion Pharm's rise was the largest at 11.41%, followed by Celltrion Healthcare (6.26%), SK Materials (5.31%), L&F (4.06%), and Seegene (0.70%). Kakao Games (-3.46%), Pearl Abyss (-2.42%), HLB (-1.26%), and EcoPro BM (-0.61%) declined. Alteogen remained flat.

This content was produced with the assistance of AI translation services.