Semiconductor Weakness and Strong Dollar Push KOSPI Back to 2440 Level... SK Hynix Down 4%

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] On the 17th, the KOSPI fell more than 1% to the 2440 level due to concerns about an economic recession triggered by the U.S. stock market. As worries about economic slowdown emerged in the U.S. stock market, the Philadelphia Semiconductor Index declined, leading to a significant drop in semiconductor stocks.

On that day, the KOSPI closed at 2442.90, down 1.39% (34.55 points) from the previous trading day. The KOSPI opened at 2466.50, down 0.44% (10.95 points) from the previous day, and continued to decline throughout the session.

In the securities market, foreigners sold stocks worth 383.6 billion KRW, showing a clear selling trend. Institutional investors also net sold 120.2 billion KRW, while individual investors purchased stocks worth 487.1 billion KRW. Regarding this, Kim Seok-hwan, a researcher at Mirae Asset Securities, diagnosed, "The sharp rise in the won-dollar exchange rate during the session acted as a burden on foreign demand." On that day, the won-dollar exchange rate in the Seoul foreign exchange market closed at 1339.1 won, up 14.1 won from the previous day, reaching just below the 1340 won level.

All of the top 10 stocks by market capitalization in the securities market closed lower, with semiconductor-related stocks showing a notable decline. SK Hynix closed at 87,700 won, down 4.15% (3,800 won) from the previous trading day, and Samsung Electronics also fell 2.07% (1,300 won) to close at 61,400 won. Samsung Electronics Preferred Shares also dropped 1.38% from the previous day. Researcher Kim pointed out, "Investor sentiment was dampened due to the sluggish U.S. stock market, including the Philadelphia Semiconductor Index falling by over 4% amid concerns of economic slowdown."

Automobile manufacturers such as Hyundai Motor (-1.16%) and Kia (-2.21%) also showed a downward trend. Additionally, Samsung SDI (-3.05%), LG Chem (-0.99%), and NAVER (-0.79%) experienced declines.

Most sector indices closed lower, with construction (-2.68%), securities (-2.05%), and electrical & electronics (-2.00%) sectors falling more than 2%. The medical precision sector rose 1.43%, gaining over 1% despite the overall declining market.

The KOSDAQ index closed at 737.54, down 0.75% (5.56 points) from the previous trading day. The KOSDAQ opened at 740.62, down 0.33% (2.48 points) from the previous day, and gradually extended its decline.

Foreign investors showed the largest selling pressure in the KOSDAQ market as well, selling stocks worth 97.4 billion KRW. Institutions also net sold 92.1 billion KRW. Individual investors purchased stocks worth 198.7 billion KRW.

Most of the top market capitalization stocks in KOSDAQ closed lower. Battery-related stocks such as Cheonbo (-5.26%), L&F (-3.06%), EcoPro (-2.39%), and EcoPro BM (-1.51%) showed notable declines. In contrast, semiconductor equipment manufacturer Lino Industrial surged 6.69% (10,500 won) to close at 167,500 won, rising sharply amid the declining market.

By sector in KOSDAQ, chemical (-2.51%), broadcasting services (-2.02%), and transportation equipment & parts (-1.80%) sectors experienced significant declines, while entertainment culture (0.60%) and telecommunications services (0.38%) sectors posted slight gains.

Meanwhile, due to the 2023 College Scholastic Ability Test (CSAT) held on that day, the opening of the securities market, KOSDAQ, and KONEX markets was delayed by one hour. The regular trading hours of the domestic stock market on that day were from 10:00 AM to 4:30 PM.

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