'Oracle shock' and 'Micron strong results' US stock market…Will Samsung Electronics and SK Hynix lead the KOSPI? [Preview of today's market]
Summary
- It reported that as the "Oracle shock" caused all three major New York indices to fall, the domestic market is expected to start lower.
- However, it noted a view that Micron's earnings surprise could have a positive effect on semiconductor stocks such as Samsung Electronics and SK Hynix.
- Experts mentioned that variables such as exchange rate volatility and continued foreign selling could lead to increased short-term volatility in the KOSPI for the time being.
As the "Oracle shock" caused all three major New York indices to fall, the domestic market is also expected to start lower on the 18th. However, since Micron — a bellwether for memory — announced an earnings surprise, there is a view that the positive effect could extend to Samsung Electronics and SK Hynix, cushioning the sharp decline in the US market.
The previous day, the KOSPI closed at 4,056.41, up 1.43% from the previous session. It largely recovered the sharp drop on the 16th and regained the 4,000 level. Institutional investors drove the index by net buying KRW 333.8 billion during the session. Individuals showed strong buying in the early session but turned to selling in the afternoon, net selling KRW 337.6 billion. Foreign investors net sold KRW 25.6 billion.
Cheap buying flowed into AI-related stocks that had fallen amid AI bubble concerns, lifting prices. Samsung Electronics finished trading up 4.96% at KRW 107,900, and SK Hynix finished up 3.96% at KRW 551,000. By sector, electrical and electronics rose 3.51% showing strength. Textiles and apparel (3.41%) and nonferrous metals (1.73%) also rose.
Lee Kyung-min and Jeong Hae-chang, researchers at Daishin Securities, said, "Samsung Electronics and SK Hynix led the KOSPI's intraday rise," and added, "Exchange rate volatility remains and foreign selling continues, so it is a time to account for short-term fluctuations."
The KOSDAQ closed at 911.07, down 0.55%. Foreign investors' net selling of KRW 223.3 billion was a major factor.
The US market, which serves as a compass for the domestic market, saw all three major indices fall. News that a key investor had withdrawn from the AI data center Oracle is building raised market concerns about the profitability of large-scale AI infrastructure investments, triggering a sell-off in tech stocks.
The Dow Jones Industrial Average closed at 47,885.97, down 0.47%; the S&P 500 index fell 1.16% to 6,721.43; and the Nasdaq Composite fell 1.81% to 22,693.32. In particular, the Philadelphia Semiconductor Index, composed of AI and semiconductor stocks, fell more than 3%. Major stocks such as NVIDIA, Broadcom, TSMC, ASML, and AMD plunged in the 4–5% range. However, with Micron announcing an earnings surprise and surging in after-hours trading, there is also a view that the Oracle-driven negative news may be somewhat calmed.
While tech stocks fell, traditional industrial and value stocks rose. Brian Mulberry, portfolio manager at Jaek Investment Management, analyzed, "Money is moving from large growth stocks to large value stocks," and said, "People are taking a more defensive stance in preparation for what may happen next year."
Han Ji-young, a researcher at Kiwoom Securities, said, "Today, the domestic market is expected to see the Nasdaq's sharp fall have a limited impact as Micron's earnings surprise and after-hours stock surge act as a cushion," and explained, "The index's up and down direction will be limited, and stock price movements are expected to occur within a certain range with only volatility."
Reporter Yang Ji-yoon yang@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
