After the Chuseok holiday, the KOSPI index fell below the 7,000 mark. The index, which had briefly surpassed 7,060, plummeted to below 6,890 as foreign investors sold off more than 3 trillion won. The surge in U.S. long-term government bond rates has dampened investor sentiment, leading to significant declines in semiconductor stocks, including Samsung Electronics and SK Hynix, which both dropped over 5%.
On September 28, the Korea Exchange reported that the KOSPI closed at 6,889.74, down 191.18 points (2.70%) from the previous trading day. After reaching a high of 7,065.90 during the day, the index widened its losses in the afternoon, finishing near its intraday low of 6,889.68.
In the securities market, foreign investors sold a net 3.2263 trillion won, while institutions sold a net 1.0174 trillion won. Individuals, however, bought a net 2.6054 trillion won. Program trading also showed a sell bias of 2.139 trillion won.
Among the top market capitalization stocks, the weakness of semiconductor shares was pronounced. Samsung Electronics ended down 5.43% at 270,000 won, while SK Hynix closed down 5.05% at 176,800 won. Other stocks, such as Samsung Electronics Preferred (-5.91%) and SK Square (-7.56%), also saw significant declines. The surge in U.S. government bond rates, coupled with news of delays in Oracle's data center business, has contributed to a decline in investor sentiment towards AI-related stocks.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The KOSPI turned weak after digesting major events during the holiday period. Although there were signs of easing in U.S.-China relations and U.S.-Iran relations, the surge in U.S. government bond rates has limited the appetite for risk assets, offsetting positive factors."
U.S. government bond rates for 2-year, 10-year, and 30-year notes rose to 4.91%, 5.21%, and 5.52%, respectively. The S&P Global Composite Purchasing Managers' Index (PMI) for September reached 58.4, the highest since July 2021, indicating robust economic expansion. This, along with comments from Federal Reserve officials about the need for further interest rate hikes and weak bond auction results, has increased upward pressure on rates.
In contrast, the KOSDAQ index closed higher. The KOSDAQ finished at 846.58, up 2.10 points (0.25%) from the previous trading day. Foreign investors bought a net 46.8 billion won, while institutions sold a net 74.2 billion won. Individuals showed a buying advantage of 21.1 billion won.
Among the top KOSDAQ stocks, Ecopro BM rose 6.00%, Ecopro increased 2.25%, and Alteogen gained 1.00%. HLB surged 29.95% to 39,700 won after its U.S. subsidiary received FDA approval for a new bile duct cancer drug, hitting the upper limit. Conversely, semiconductor-related stocks such as Wonik IPS (-7.85%), Rino Industry (-4.17%), and EoTechnics (-2.70%) showed weakness.
* This article has been translated by AI.
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