The KOSPI opened higher on June 2, buoyed by a surge in Nvidia and strong performance in U.S. tech stocks. However, early profit-taking led to mixed results. Investor caution is growing as focus remains on major semiconductor and artificial intelligence (AI) stocks.
According to the Korea Exchange, as of 9:36 a.m., the KOSPI was up 15.40 points (0.18%) at 8,803.78. The index started at 8,883.19, up 94.81 points (1.08%), but briefly turned negative before rebounding due to buying from individual investors.
The market experienced significant volatility early on. At around 9:09 a.m., the KOSPI dropped to 8,503.48, down 284.90 points (3.24%) from the previous day. However, it quickly recovered losses and has been fluctuating around the 8,800 mark.
In the previous session, U.S. markets saw the Dow Jones Industrial Average rise by 0.09%, the S&P 500 by 0.26%, and the Nasdaq by 0.42%, with all three indices reaching record highs.
Nvidia announced its entry into the AI PC market at the GTC event in Taiwan, resulting in a 6.26% jump in its stock price. Additionally, server company HPE saw a surge in after-hours trading following a strong earnings report, fueling expectations for AI infrastructure investments.
At this time, individuals and institutions in the securities market are net buying 27.195 billion won and 892 million won, respectively, while foreign investors are net selling 26.796 billion won.
Among the top market capitalization stocks, Samsung Electronics (up 3.44%), LG Energy Solution (up 4.95%), Samsung Life Insurance (up 3.78%), and Samsung C&T (up 0.22%) are gaining. Conversely, SK Hynix (down 1.02%), SK Square (down 2.15%), Hyundai Motor (down 4.00%), Samsung Electro-Mechanics (down 12.57%), and HD Hyundai Heavy Industries (down 4.09%) are declining.
At the same time, the KOSDAQ index is down 21.34 points (2.03%) at 1,028.69. The index started at 1,044.89, down 5.14 points (0.49%), and has been widening its losses.
In the KOSDAQ market, foreign and institutional investors are net buying 177.1 billion won and 88.4 billion won, while individuals are net selling 261.9 billion won.
Among the top KOSDAQ stocks, Alteogen (down 0.82%), Rainbow Robotics (down 1.77%), Rino Industry (down 1.85%), Samchundang Pharmaceutical (down 5.51%), HLB (down 5.59%), and Peptron (down 3.23%) are falling. In contrast, EcoPro BM (up 0.97%), EcoPro (up 3.60%), JUSUNG Engineering (up 5.44%), and Kolon TissueGene (up 1.71%) are rising.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Nvidia's announcement of its entry into the AI PC market and positive U.S. manufacturing indicators are stimulating investment sentiment in semiconductors. However, given the recent concentration of funds in semiconductor and AI hardware sectors, we must also consider the potential for short-term profit-taking pressure and increased volatility."
He added, "Currently, the market is driven more by AI narratives than by earnings. While expanding the share of leading semiconductor and IT hardware stocks remains a valid strategy, it may also be worth considering a barbell strategy that includes previously overlooked earnings stocks in sectors like securities, power equipment, and shipbuilding."
* This article has been translated by AI.
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