On November 9, the KOSPI index closed down despite an early attempt to rebound, buoyed by gains in U.S. semiconductor stocks. Major semiconductor companies like Samsung Electronics and SK Hynix maintained their upward momentum, but the KOSPI ultimately fell due to selling pressure from foreign and individual investors, erasing earlier gains of over 2%. Analysts suggest that uncertainties surrounding artificial intelligence (AI) regulations and external factors make a significant market rebound unlikely at this time.
According to the Korea Exchange, the KOSPI finished at 5018.85, down 40.84 points (0.81%) from the previous trading day. The index opened at 5034.20, down 25.49 points (0.50%), but turned positive in the morning and briefly expanded its gains to over 2%. Following strong performances by U.S. semiconductor stocks on November 6, domestic markets saw some bargain hunting, but heavy selling in the latter part of the session halted the upward trend.
Semiconductor stocks showed relatively strong performance. Samsung Electronics closed up 0.64% at 189,900 won, while SK Hynix rose 0.35% to 1,136,000 won. Lee Kyung-min, a researcher at Daishin Securities, noted, "The semiconductor sector successfully rebounded due to bargain hunting, but other sectors continued to struggle amid weakened investor sentiment, leading to a differentiated market performance across sectors."
In terms of market dynamics, institutional investors were net buyers, purchasing 719.7 billion won, while individuals and foreign investors sold 511.2 billion won and 658.6 billion won, respectively, failing to prevent the decline. Notably, foreign investors continued their selling streak for the seventh consecutive trading day.
The KOSDAQ index also fell, closing down 5.30 points (0.82%) at 638.97, despite gains in semiconductor and display-related stocks. Companies like JUSUNG Engineering (up 6.70%), Simtek (up 6.84%), and EoTechnics (up 6.00%) saw increases, but major biotech and secondary battery stocks such as Alteogen (down 16.01%) and EcoPro (down 8.46%) weighed on the index.
Initially, there were expectations that the recent selling pressure would ease, allowing for a short-term rebound, as much of the negative sentiment surrounding AI had already been priced in. Analysts believed that steady buying from financial investors and a resumption of large-scale purchases by pension funds could provide a safety net for the market.
However, forecasts indicate that both domestic and international markets are likely to experience fluctuations without a clear direction, influenced by key variables. Geopolitical factors, the performance of AI and semiconductor companies, and the potential detailing of AI and data center regulations led by the U.S. Democratic Party are expected to be significant determinants of future market trends.
Kim Yong-gu, a researcher at Yuanta Securities, explained, "Domestic and international markets are likely to reflect changes in news flow related to high inflation, tight monetary policy, and high interest rate risks, as well as the sustained earnings growth of representative companies in the AI and semiconductor value chain, until the specifics of the AI and data center regulations are clarified."
* This article has been translated by AI.
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