South Korea's KOSPI Stocks index fell over 4% in early trading but reduced losses as foreign investors net bought 256.2 billion won. The benchmark declined due to weakness in US markets and Middle East geopolitical tensions. Foreign and institutional buying reversed the selloff, with the index recovering from intraday lows near the 6500 level.
According to the Korea Exchange, KOSPI stood at 6794.29 at 9:20 AM, down 26.31 points (0.39%) from the previous trading day. The index opened at 6643.58, down 177.02 points (2.60%), and fell more than 4% in early trading before recovering most losses.
Foreign and Institutional Investors Net Buy 256.2 Billion Won
In the securities market, foreign investors net bought 256.2 billion won and institutions net bought 13.2 billion won, while retail investors net sold 279.8 billion won.
Among top market-cap stocks, Samsung Electronics rose 0.59% and SK Hynix rose 2.39%. SK Square (0.41%) and Samsung Electro-Mechanics (3.52%) also showed strength. Hyundai Motor (-3.76%), LG Energy Solution (-2.84%), and Samsung Life Insurance (-2.72%) declined.
By sector, electrical and electronics (0.53%) and real estate (0.28%) rose, while machinery and equipment (-4.43%), insurance (-4.31%), and medical and precision instruments (-4.23%) weakened.
US NASDAQ Falls 1.40% on AI Model Concerns
On local time May 17, the New York stock market fell across the board as selling continued in artificial intelligence (AI) semiconductor stocks. The technology-focused NASDAQ index fell 1.40%.
Analysis suggests investor sentiment weakened due to concerns about profitability prospects for major US AI companies after China's AI startup Moonshot AI released its latest AI model 'Kimi K3' for free, which received evaluations of high performance.
News of casualties among US troops stationed in Jordan heightened military tensions between the US and Iran, and surging international oil prices also weighed on the domestic stock market.
Lee Kyung-min, a researcher at Daishin Securities, stated: "The sharp decline in US and global semiconductor stocks is not due to fundamental changes. While concerns about semiconductor industry peak-out are being raised, earnings volatility has been limited so far, and earnings outlook is expected to trend upward until 2027."
Lee added: "The early part of this week when KOSPI is around the 6000 level can be seen as an opportunity to increase positions. For semiconductor, IT hardware, IT appliances, secondary batteries, shipbuilding, chemicals, and machinery sectors, accumulation strategies utilizing short-term volatility are effective."
KOSDAQ Reduces Losses to 1.90% Decline
At the same time, the KOSDAQ index stood at 776.82, down 15.02 points (1.90%) from the previous trading day. The KOSDAQ index opened at 773.21 and showed a trend of reducing losses similar to KOSPI.
In the KOSDAQ market, retail investors and institutions net bought 40.7 billion won and 4 billion won respectively, while foreign investors net sold 44.9 billion won.
Among top market-cap stocks, Alteogen (1.27%), Rainbow Robotics (0.38%), and Kolon TissueGene (0.97%) rose, while EcoPro BM (-3.74%), EcoPro (-3.63%), and Jusung Engineering (-0.32%) fell.
Samchundang Pharmaceutical surged 29.82% after it became known that the company received an official response letter for pre-ANDA (pre-submission meeting) related to development of oral semaglutide generic from the US Food and Drug Administration (FDA).
FAQ
Q: What did foreign investors do in KOSPI Stocks trading on this day?
A: Foreign investors net bought 256.2 billion won in the securities market, while institutions net bought 13.2 billion won and retail investors net sold 279.8 billion won.
Q: Why did KOSPI Stocks fall in early trading?
A: KOSPI fell due to weakness in US markets where NASDAQ declined 1.40% on AI concerns, and Middle East geopolitical tensions after news of US troop casualties in Jordan heightened military tensions between the US and Iran, causing international oil prices to surge.
Q: How did Samsung Electronics and SK Hynix perform?
A: Samsung Electronics rose 0.59% and SK Hynix rose 2.39% during the trading session, contributing to KOSPI's recovery from early losses.
