The KOSPI index opened higher on June 2, buoyed by optimism surrounding artificial intelligence (AI) from NVIDIA, but quickly fell over 2% due to significant profit-taking by foreign investors. After nearing the 8,900 mark early in the session, the index dropped to the 8,600 level in the afternoon, reflecting increased volatility.
As of 1:42 PM, the KOSPI was down 189.60 points (2.16%) at 8,598.78, according to the Korea Exchange.
The index began the day at 8,883.19, up 94.81 points (1.08%), and briefly rose to 8,933.62 shortly after the opening. This surge was influenced by all three major U.S. stock indices reaching record highs overnight and NVIDIA's announcement of its entry into the PC market with AI chips.
However, volatility was evident from the start. At around 9:09 AM, the KOSPI fell to 8,503.48, down 284.90 points (3.24%) from the previous day, before recovering some losses. Yet, it resumed its decline in the afternoon.
In the securities market, individuals and institutions were net buyers, purchasing 7.5788 trillion won and 1.466 trillion won, respectively. In contrast, foreign investors led the decline with net sales of 7.4322 trillion won.
Movements among major stocks were mixed. SK Hynix (-2.88%), Hyundai Motor (-4.33%), Samsung Electro-Mechanics (-12.32%), and LG Energy Solution (-2.75%) saw declines, while Samsung Electronics (1.07%), SK Square (2.15%), Samsung Life Insurance (5.61%), and Samsung C&T (1.10%) experienced gains.
Profit-taking in large-cap semiconductor and AI-related stocks, which had recently driven the market, has led to increased sector differentiation.
The KOSDAQ index also showed weakness, recording a decline of 29.28 points (2.79%) to 1,020.75 at the same time.
In the KOSDAQ market, foreign and institutional investors were net buyers of 250.8 billion won and 130.7 billion won, respectively, while individuals sold off 376.9 billion won, contributing to the index's drop.
Among the top market capitalization stocks, Kolon TissueGene (13.66%) and Juseong Engineering (4.58%) showed strength, while EcoPro BM (-3.67%), Alteogen (-2.19%), EcoPro (-1.92%), Rainbow Robotics (-2.79%), Samchundang Pharmaceutical (-6.74%), and Rino Industrial (-4.93%) faced declines.
Han Ji-young, a researcher at Kiwoom Securities, noted that "NVIDIA's announcement of its entry into the AI PC market and positive U.S. manufacturing indicators are stimulating investment sentiment in semiconductors." However, he cautioned that with the recent concentration of funds in semiconductor and AI hardware sectors, there is a need to consider short-term profit-taking pressures and the potential for increased volatility.
He added, "Currently, the market is driven more by AI narratives than by earnings, and while expanding the weight of leading semiconductor and IT hardware stocks remains valid, a barbell strategy that includes previously neglected earnings stocks in sectors like securities, power equipment, and shipbuilding should also be considered."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.