KOSPI Declines Amid Economic Slowdown Concerns and Weak US Semiconductor Sector... Foreign Investors 'Sell'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The KOSPI is widening its decline to nearly 1% in the morning session on the 17th. Concerns over an economic slowdown have emerged as semiconductor stocks fell in the U.S. stock market due to weak demand worries, dragging down major domestic semiconductor stocks as well.

As of 11 a.m. today, the KOSPI is at 2455.00, down 0.91% (22.45 points) from the previous trading day. The KOSPI opened at 2466.50, down 0.44% (10.95 points) from the previous day, and is extending its losses.

Foreign investors are net sellers of 249.9 billion KRW in the KOSPI. The won's depreciation and the renewed rise in the won-dollar exchange rate appear to be burdensome for foreign investors. Sangyoung Seo, Head of Media Content at Mirae Asset Securities, said, "Despite the dollar's weakness, the won-dollar exchange rate has risen by about 10 won, indicating won depreciation, which will also burden foreign demand." Meanwhile, individual and institutional investors are buying stocks worth 197.7 billion KRW and 55.8 billion KRW, respectively.

Among the large-cap stocks in the KOSPI market, semiconductor stocks are notably declining. This is attributed to the weakness in semiconductor stocks following Micron's announcement of production cuts in the U.S. stock market the previous day. SK Hynix is trading at 87,800 KRW, down 4.04% (3,700 KRW) from the previous day, and Samsung Electronics is also down 1.59% (1,000 KRW) at 61,700 KRW. Samsung Electronics Preferred shares are trading down 1.55% as well.

Other stocks such as Samsung SDI (-2.22%), Kia (-1.77%), Hyundai Motor (-0.87%), and NAVER (-0.79%) are also declining. Samsung Biologics is the only large-cap stock rising, up 0.45% (4,000 KRW) to 884,000 KRW.

By sector, the electrical and electronics index fell 1.62% from the previous day, showing a significant decline. Construction (-1.80%), securities (-1.21%), and chemicals (-1.11%) are also down. On the other hand, medical precision (1.45%) and pharmaceuticals (0.73%) are rising.

At the same time, the KOSDAQ index is at 739.39, down 0.50% (3.71 points) from the previous trading day. The KOSDAQ opened at 740.62, down 0.33% (2.48 points), and the decline has slightly deepened.

Both institutional and foreign investors are selling in the KOSDAQ market. Institutions and foreigners are net sellers of 43.3 billion KRW and 36.2 billion KRW, respectively. Meanwhile, individuals are the sole buyers, purchasing stocks worth 88.1 billion KRW.

Among the top market cap stocks in KOSDAQ, second battery-related stocks are experiencing large declines. Cheonbo is trading at 251,700 KRW, down 3.34% (8,700 KRW), while L&F (-2.72%) and EcoPro BM (-1.51%) are also falling. In contrast, Rino Industrial (2.93%) and Kakao Games (1.00%) are rising.

By sector, entertainment culture (0.69%) and digital content (0.67%) are slightly up, while chemicals (-1.60%), broadcasting services (-1.51%), and semiconductors (-1.37%) are weak.

Kiwoom Securities researcher Jiyoung Han said about the domestic stock market today, "The market is expected to show a weak trend influenced by the decline in the U.S. stock market, concerns over a slowdown in U.S. consumption affecting Korean export performance, and the strength of the dollar. Since major semiconductor stocks such as Intel and AMD plunged together due to the negative impact from U.S. Micron, investment sentiment toward semiconductor-related stocks in the domestic market will also weaken."

Meanwhile, due to the 2023 College Scholastic Ability Test (CSAT) held today, the opening of the KOSPI, KOSDAQ, and KONEX markets was delayed by one hour. The regular trading hours for the domestic stock market today are from 10 a.m. to 4:30 p.m.

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