KOSPI barely holds 5000, fails to regain momentum
Summary
KOSPI closed at 5,018.85 in Seoul on Monday, down 0.81 percent, after briefly recovering above 5,100. The index had plunged more than 11 percent the previous week amid concerns that tighter U.S. AI regulation could affect semiconductor stocks after the Democrats’ midterm election victory. Foreign selling erased the session’s gains, while SK hynix and Samsung Electronics edged higher. An analyst said the market was more likely to move sideways than stage a near-term V-shaped rebound.
Key Facts
- KOSPI opened at 5,043.20, down 0.5 percent from its previous close.
- Institutions bought a net 719 billion won, while foreign and retail investors sold a net 658 billion won and 511 billion won, respectively.
- SK hynix rose 0.35 percent to 1.14 million won, and Samsung Electronics gained 0.64 percent to close at 189,900 won.
- Kosdaq closed at 638.97, down 0.82 percent, after opening at 638.82.
- The won strengthened 9.5 won against the U.S. dollar to close at 1,347.1 won.
A stock ticker at Hana Bank's headquarters in Seoul shows the benchmark KOSPI closing at 5,018.85, down 0.81 percent from the previous close, Monday. Yonhap
KOSPI struggled to regain its footing Monday after plunging more than 11 percent last week.
The benchmark index barely held above the 5,000 mark, underscoring the volatility that has gripped the market since concerns over tighter U.S. artificial intelligence (AI) regulation rattled semiconductor stocks following the Democrats’ sweeping midterm election victory on Nov. 3.
The index opened at 5,043.20, down 0.5 percent from the previous close, according to the Korea Exchange. Institutional buying, alongside a modest rebound in semiconductor heavyweights, lifted it back above 5,100 during the session.
The gains proved short-lived, however, as foreign selling pushed KOSPI lower again, with the index eventually closing at 5,018.85, down 0.81 percent.
Institutions bought a net 719 billion won ($533.26 million), while foreign and retail investors sold a net 658 billion won and 511 billion won, respectively.
Shares of the country’s two semiconductor heavyweights edged higher. SK hynix rose 0.35 percent to 1.14 million won, while Samsung Electronics gained 0.64 percent to close at 189,900 won.
Market analysts expect the benchmark index to trade sideways for some time following last week’s sharp sell-off, with AI-related stocks unlikely to regain their previous momentum in the near future.
“A sideways trend is more likely than a V-shaped rebound in the near term,” said Kim Dae-jun, an analyst at Korea Investment & Securities.
Cautioning investors against expecting AI-related stocks to deliver the same returns as before, Kim added they should consider diversifying into sectors with more resilient prospects, such as health care and secondary batteries. These sectors could also benefit from the Democrats’ policy agenda, which includes lowering prescription drug costs and expanding access to health care, as well as continued support for clean energy.
The secondary bourse Kosdaq opened 0.85 percent lower at 638.82 before closing at 638.97, down 0.82 percent.
In the Seoul foreign exchange market, the won strengthened 9.5 won against the U.S. dollar to close at 1,347.1 won.
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