As the New York stock market showed mixed signals, attention turns to whether the KOSPI can recover from its recent losses. The KOSPI fell for four consecutive trading days, and the movements of foreign and institutional investors are expected to influence the index's direction.
On October 12, the Dow Jones Industrial Average closed up 195.60 points (0.38%) at 51,850.55. The S&P 500 index fell 4.30 points (0.06%) to 7,807.24, while the tech-heavy Nasdaq Composite dropped 120.27 points (0.44%) to finish at 27,245.90.
Notably, memory semiconductor stocks experienced significant declines. Chinese memory chip maker Changxin Memory Technologies (CXMT) announced advancements in DRAM technology and plans to launch next-generation server products within the year, which has put pressure on related stocks.
The Philadelphia Semiconductor Index fell by 2.60%, and U.S. memory chip manufacturer Micron Technology saw a sharp decline of 3.88%. The American Depositary Receipts (ADRs) of SK Hynix also dropped by 4.02%. Other major players like NVIDIA (-1.29%), TSMC (-1.29%), and Broadcom (-1.88%) also faced losses.
On the previous trading day, the KOSPI closed down 241.69 points (3.65%) at 6,384.24. This marked the first time the index fell to the 6,300 range since August 11 (6,345.53). The decline was the largest since September 2, when it dropped by 3.99%.
From October 6 to the previous day, the index showed weakness for four consecutive trading days, losing a total of 619.50 points (8.85%). Daily declines increased progressively, with rates of 0.89%, 1.98%, 2.62%, and 3.65%.
Before the market opened, major KOSPI stocks were also showing weakness. In the pre-market session of NextTrade, as of 8:45 a.m., Samsung Electronics (-3.39%), SK Hynix (-3.8%), SK Square (-4.8%), and Samsung Electro-Mechanics (-3.43%) were all declining.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The KOSPI is likely to have formed conditions for a short-term rebound from a technical and valuation perspective. However, it is necessary to keep open the possibility of a scenario where a rebound occurs due to perceived excessive declines, stabilization of foreign investment, and some alleviation of macroeconomic and earnings uncertainties through the U.S. September Consumer Price Index (CPI) and ASML and TSMC earnings results."
* This article has been translated by AI.
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