The KOSPI index dropped more than 4% in early trading, falling to below 6960. While U.S. markets closed higher due to a decline in the Producer Price Index (PPI) and strong performances from major tech stocks, the decline in the Philadelphia Semiconductor Index and a sharp drop in SK Hynix's American Depositary Receipts (ADRs) weighed heavily on domestic semiconductor stocks, dragging the index down.
As of 9:11 a.m. on July 16, the KOSPI was down 322.62 points (4.43%) at 6961.79. The index opened at 6960.50, down 323.91 points (4.45%), and continued to show weakness around the 6960 mark.
On the previous night, the New York Stock Exchange saw the U.S. PPI for June fall by 0.3% compared to the previous month, which was below expectations, while major financial firms reported strong earnings, contributing to a positive close. However, the Philadelphia Semiconductor Index fell by 2.08%, and SK Hynix's ADR plummeted by 9%, adding pressure to the domestic market.
In the securities market, individual investors have made a net purchase of 724.6 billion won. In contrast, foreign and institutional investors sold a net 240 billion won and 518.4 billion won, respectively, contributing to the index's decline.
Among the top market capitalization stocks, LG Energy Solution (up 1.49%) and KB Financial (up 0.83%) saw gains. However, Samsung Electronics (down 5.72%), SK Hynix (down 8.65%), SK Square (down 10.27%), Samsung Electro-Mechanics (down 8.70%), Hyundai Motor (down 3.11%), Samsung Life Insurance (down 2.37%), Samsung Biologics (down 0.87%), and Samsung C&T (down 4.09%) all experienced declines.
At the same time, the KOSDAQ index recorded a drop of 20.52 points (2.47%), standing at 808.91. The index opened at 813.32, down 16.11 points (1.94%), and continued to widen its losses.
In the KOSDAQ market, individual investors have made a net purchase of 25.8 billion won, while foreign and institutional investors sold a net 32.9 billion won and 4.7 billion won, respectively.
Among the top market capitalization stocks, Kolon TissueGene (down 0.26%) showed slight weakness. Other stocks such as Alteogen (down 3.12%), EcoPro BM (down 2.23%), EcoPro (down 2.31%), JUSUNG Engineering (down 6.21%), Rainbow Robotics (down 4.88%), Wonik IPS (down 7.22%), and Rino Technology (down 3.34%) also displayed declines.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The decline in the U.S. Consumer Price Index (CPI) for June, the rise in the Philadelphia Semiconductor Index, and the surge in SK Hynix's ADR are positive signs. However, uncertainties remain with the upcoming earnings announcements from ASML and TSMC, as well as leverage supply variables, which may lead to continued volatility during the trading session."
He added, "Given that the domestic market has adjusted to levels seen during the financial crisis, the potential for further declines is limited. While there may be short-term supply volatility, the overall trajectory of the market is likely to lean towards recovery, particularly in sectors like semiconductors and AI infrastructure that have seen excessive declines."
* This article has been translated by AI.
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