The KOSPI index surged over 3% during the day, briefly surpassing the 7200 mark, before reversing course and closing down 1.5%. The index initially rose on the strength of U.S. semiconductor stocks but later gave back its gains due to profit-taking and institutional selling.
On August 18, the KOSPI closed at 6869.83, down 108.11 points (1.55%) from the previous trading day. The index opened at 7127.77, up 2.15%, and reached a high of 7216.62, marking a 3.42% increase at one point. However, it later fell, dipping to as low as 6788.78 during the session, with a difference of 427.84 points between the day's high and low. Trading volume was recorded at 399,036,000 shares, with a total trading value of 29.6448 trillion won.
In the early part of the day, semiconductor stocks led the index's rise. This was influenced by strong performances in the U.S. market, where Micron rose 4.1%, SanDisk increased by 8.9%, and Western Digital climbed 5.4%. Optimism surrounding artificial intelligence (AI) investments contributing to actual revenue growth also fueled positive sentiment towards AI infrastructure investments.
Samsung Electronics closed down 2.19% at 268,500 won, after reaching a high of 288,000 won, up 4.92%, during the day. SK Hynix also ended up 1.03% at 166,200 won, having surged nearly 9% to 179,200 won at one point.
However, the mood shifted sharply in the afternoon. After five consecutive days of gains, profit-taking became more pronounced, compounded by renewed geopolitical risks from the Middle East that pressured investor sentiment. Foreign net buying decreased, while institutional net selling expanded, leading to a larger decline in the index. Retail investors purchased a net 731.3 billion won, while foreign investors bought a net 86.1 billion won, but institutions sold a net 784.9 billion won.
Lee Kyung-min, a researcher at Daishin Securities, stated, “Investor sentiment towards the semiconductor sector remains positive, but the pullback following five consecutive days of gains and profit-taking led to weakness. The reduction in foreign net buying and the increase in institutional selling contributed to the overall sector decline.”
* This article has been translated by AI.
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