The KOSPI index is showing weakness in early trading despite a rally in U.S. semiconductor stocks. Following a more than 6% drop in the previous session, expectations for bargain hunting have increased, but continued foreign selling is preventing a rebound. Analysts note that concerns related to artificial intelligence (AI) have largely been reflected in stock prices, and while supply and demand conditions are improving, volatility is likely to persist in the near term.
As of 9:02 a.m. on November 9, the KOSPI was down 10.33 points (0.20%) at 5049.36. The index opened 25.49 points (0.50%) lower at 5034.20 but briefly turned positive before returning to negative territory.
In the securities market, individual and institutional investors are net buyers, purchasing 167.1 billion won and 7.3 billion won, respectively. In contrast, foreign investors are net sellers, offloading 177.2 billion won, which is exerting downward pressure on the index.
Most large-cap stocks are also trending downward. Samsung Electronics is the only stock showing gains at 0.53%, while SK Hynix (-0.18%), SK Square (-1.80%), LG Energy Solution (-2.07%), Samsung Biologics (-1.06%), Samsung Electro-Mechanics (-1.72%), Hyundai Motor (-1.43%), KB Financial (-1.59%), and Celltrion (-0.17%) are all declining.
The KOSDAQ index is also in the red, down 4.04 points (0.63%) at 640.23. It opened 5.45 points (0.85%) lower at 638.82. In the KOSDAQ market, individual investors are net buyers of 29.8 billion won, while foreign and institutional investors are net sellers of 31.0 billion won and 700 million won, respectively.
Among large-cap KOSDAQ stocks, Alteogen (-8.98%), EcoPro BM (-2.77%), EcoPro (-4.53%), Rainbow Robotics (-4.67%), HLB (-3.36%), Samchundang Pharm (-1.47%), Simtech (-2.67%), and Rino Technology (-1.50%) are all declining. Conversely, JUSUNG Engineering (1.05%) and EoTechnics (0.53%) are rising.
Earlier, on November 6 (local time), the New York stock market saw a surge in bargain buying, particularly in technology stocks. The Nasdaq Composite rose 1.09%, and the S&P 500 increased by 0.31%. Major semiconductor stocks also performed well, with Nvidia up 2.78%, and AMD and Micron rising 11.04% and 5.12%, respectively. The Philadelphia Semiconductor Index surged 4.2%. The MSCI Korea ETF rose 4.07%, and the MSCI Emerging Markets ETF increased by 2.20%, while KOSPI 200 night futures rebounded by 1.60%.
Market analysts believe that the rebound in domestic stocks will be driven by bargain buying following the recent drop and the strength of U.S. semiconductor stocks. Seo Sang-young, an executive at Mirae Asset Securities, stated, "On Monday, the Korean market is expected to open higher due to bargain buying and the strength of U.S. semiconductor stocks. However, the sustainability of this rebound remains to be seen, and volatility is likely to continue."
Lee Kyung-min, a researcher at Daishin Securities, also emphasized the potential for a rebound. He noted, "We are entering a phase where the medium-term correction is concluding. Various negative factors related to AI have already been priced in, and with concerns about forced selling easing, steady buying from financial investors and a resumption of large-scale purchases by pension funds will serve as a safety net."
* This article has been translated by AI.
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