Kospi Drops 3.19% in Early Trade to 5,600 Level; Samsung Electronics, SK Hynix Weaken
Summary
- The Kospi index plunged 3.19% in early trading, slipping into the 5,600 range as selling concentrated in major domestic semiconductor stocks.
- Foreign and institutional investors were net sellers of 202.3 billion won and 72.9 billion won, respectively, on the Kospi, while retail investors were net buyers of 265.4 billion won, absorbing the selling pressure.
- Semiconductor names including Samsung Electronics and SK Hynix, along with SK Square and Samsung Life Insurance, traded lower, while Samsung Biologics and LG Energy Solution advanced.
Forecast Trend Report by Period
South Korea’s Kospi fell more than 3% in early trading on Nov. 3, slipping to the 5,600 level as weakness in U.S. technology shares spilled over into the local market.
As of 9:06 a.m., the benchmark Kospi was down 186.89 points, or 3.19%, at 5,672.19 from the previous session. Selling centered on South Korea’s large-cap semiconductor stocks as concerns over the profitability of artificial intelligence investment resurfaced.
U.S. technology stocks led declines on Wall Street overnight. Equities opened higher after international oil prices fell on expectations for U.S.-Iran negotiations to end the war, but later turned lower as the investment burden tied to AI-related companies came into focus.
Oracle tumbled 8.76% after announcing plans to issue $10 billion in stock and $10 billion in bonds to raise funds for AI infrastructure investment. Marvell Technology also fell 12.72% after unveiling plans to acquire optical components maker Lumentum, while Lumentum shares dropped 18.59%.
Han Ji-young, an analyst at Kiwoom Securities, said the correction in U.S. technology stocks would weigh on South Korean equities despite supportive macro conditions such as lower oil prices and falling interest rates. Renewed doubts about the AI industry's profitability also hurt investor sentiment.
On the Kospi, foreign investors were net sellers of 202.3 billion won and institutions sold a net 72.9 billion won. Retail investors bought a net 265.4 billion won, absorbing the supply. Samsung Electronics fell 4.69% to 218,250 won, while SK Hynix dropped 5.10% to 1,397,000 won.
Among major stocks, SK Square fell 5.79%, Samsung Life Insurance lost 5.15%, Samsung Electro-Mechanics dropped 4.69%, Samsung C&T slipped 2.21% and Hyundai Motor declined 1.22%. By contrast, Samsung Biologics rose 1.76% and LG Energy Solution gained 0.56%.
The Kosdaq also fell, dropping 17.54 points, or 2.39%, to 716.82. Foreign investors and institutions were net sellers of 29.4 billion won and 40 billion won, respectively, while retail investors bought a net 80.1 billion won. Semiconductor-related shares posted steep losses, including EO Technics, down 5.87%, Wonik IPS, down 5.71%, and Jusung Engineering, down 5.36%. Alteogen rose 0.47%.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.