KOSPI and KOSDAQ Close Lower... KOSPI Holds Above 3,100 on Institutional Buying

The Korean stock market closed lower on August 20. The market extended its decline for a third consecutive session, weighed down by profit-taking in previously leading stocks, concerns over an artificial intelligence (AI) bubble, and diminished expectations for a U.S. interest rate cut.

On the 20th, when the KOSPI fell below the 3100 level for the first time in a month, dealers were working in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Kang Jinhyung

On this day, the KOSPI index ended trading at 3,130.09, down 21.47 points (0.68%) from the previous day. The index opened at 3,121.52, down 30.4 points (0.95%), and briefly fell below the 3,100 mark in the morning. However, as institutional investors turned to net buyers, the decline was gradually reduced. Foreign investors net sold 227.7 billion won, and individual investors sold 392.7 billion won. Institutional investors purchased 516.3 billion won.

Among large-cap stocks, Kia (up 1.06%), Samsung Electronics (up 0.71%), Hyundai Motor (up 0.68%), HD Hyundai Heavy Industries (up 0.67%), Samsung Life Insurance (up 0.62%), and Samsung Electronics Preferred (up 0.52%) rose. In contrast, Doosan Enerbility (down 3.53%), SK Hynix (down 2.85%), NAVER (down 1.77%), LG Energy Solution (down 1.69%), HD Korea Shipbuilding & Offshore Engineering (down 1.55%), Hanwha Aerospace (down 1.33%), Samsung C&T (down 0.93%), and Hanwha Ocean (down 0.75%) declined.

By sector, food, beverage & tobacco (up 0.53%), textiles & apparel (up 0.40%), and entertainment & culture (up 0.22%) advanced. However, most sectors posted losses, including machinery & equipment (down 2.52%), construction (down 2.02%), securities (down 1.93%), medical precision equipment (down 1.57%), IT services (down 1.09%), metals (down 0.97%), mid-cap stocks (down 0.96%), electrical & electronics (down 0.87%), non-metals (down 0.82%), and paper & wood (down 0.80%).

The KOSDAQ index closed at 777.61, down 10.35 points (1.31%) from the previous day. The index opened at 778.63, down 9.33 points (1.18%), and plunged to the 769 level before paring some losses. Foreign investors and institutions net sold 42.2 billion won and 85.6 billion won, respectively. Individual investors bought 157.2 billion won.

Among the top KOSDAQ stocks by market capitalization, Peptron (up 3.32%), Silicon Two (up 1.90%), SM Entertainment (up 1.82%), Samchundang Pharm (up 0.90%), and JYP Entertainment (up 0.63%) gained. On the other hand, LIG Chem Bio (down 3.88%), PharmaResearch (down 3.26%), Rainbow Robotics (down 2.87%), ABL Bio (down 2.65%), HLB (down 2.55%), Ecopro (down 2.48%), Lino Industrial (down 1.72%), Alteogen (down 1.41%), Ecopro BM (down 1.29%), and Kolon TissueGene (down 1.22%) ended lower.

Kim Jiwon, a researcher at KB Securities, said, "Sam Altman, CEO of OpenAI, pointed out the possibility of a bubble in AI-related stocks, which intensified the weakness in tech stocks on the New York Stock Exchange. As a result, domestic semiconductor stocks such as SK Hynix also showed weakness."

He added, "The aftermath of the controversy over unfair contracts involving Korea Hydro & Nuclear Power continued, leading to declines in leading sectors such as nuclear power, defense, construction, and securities. However, there were explanations that the contract terms were 'bearable and still profitable,' which helped the market recover a significant portion of its losses in the afternoon."

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