KOSPI falls for five straight sessions as fears over Chinese memory competition and AI investment sustainability escalate.
Samsung Electronics and SK hynix nosedive; KOSDAQ trims losses on dip-buying.
South Korean equity markets saw both the KOSPI and KOSDAQ finish in the red on the 13th. The KOSPI slid toward the 6,000-point threshold, pressured by a sharp sell-off in heavyweight semiconductor stocks, while the KOSDAQ extended its losing streak to four days.
According to the Korea Exchange, the KOSPI closed at 6,035.34, down 348.90 points (5.47%) from the previous trading session. The KOSDAQ index fell 12.16 points (1.43%) to finish at 837.03. The won-dollar exchange rate closed the session at 1,345.1 won, up 10.0 won.
The KOSPI opened lower amid growing concerns over intensifying competition with Chinese memory firms and the long-term sustainability of artificial intelligence investments. The decline deepened throughout the day, accelerating to a 5% drop as geopolitical uncertainties stemming from the Middle East further dampened investor sentiment.
By sector, electrical and electronics plummeted 7.6%, followed by finance at 3.7%, machinery and equipment at 3.1%, and insurance at 2.5%. Large-cap stocks fell 5.9%, while mid-cap and small-cap indices declined 0.6% and 0.8%, respectively.
In terms of trading activity, foreign investors offloaded a net 4.533 trillion won worth of shares, while institutional and retail investors net-purchased 1.6883 trillion won and 2.2361 trillion won, respectively. Foreign selling was concentrated in the electrical and electronics sector (4.2644 trillion won), finance (353.7 billion won), and insurance (55.1 billion won).
The KOSDAQ index saw its intraday losses widen due to global AI investment concerns and Middle East tensions, but found support from bargain hunting toward the close. By sector, non-metallic minerals fell 3.9%, general services 3.1%, and retail 2.7%. Foreign and institutional investors net-bought 139.9 billion won and 42.9 billion won, respectively, while retail investors net-sold 190.8 billion won.
Security and ESS Stocks Buck Trend Amid Market Sell-off; Delisting-Relief Plays Surge
Expectations for increased cybersecurity spending in response to financial sector hacking incidents and AI-driven cyber threats pushed AhnLab (053800) up 10.51% and LaonSecure (042510) up 6.06%.
LG Energy Solution (373220) rose 3.02% on growth expectations for the Energy Storage System (ESS) market. Doosan Tesna (131970) jumped 7.43% on hopes for rising demand in AI semiconductor testing, while HLB BioStep (278650) rallied 12.05% following news of its participation in a 5-billion-won national project for AI-based non-clinical evaluation.
Stocks viewed as beneficiaries of potential delays in delisting procedures saw significant gains, with Yesun Tech (250930) hitting the daily limit up by 29.97%. Bio Infra (199730) surged 29.92%, and ANP (015260) rose 14.21%.
Lotte Insurance (000400) gained 7.94% on reports that Shinhan Financial Group signed a deal to acquire a 77.04% stake for 693.3 billion won. Kumho Electric (001210) climbed 3.88% on expectations surrounding the development of a semiconductor cluster in the Honam region.
Semiconductor Stocks Tumble on China Competition Fears; Individual Issues Face Downward Pressure
With investor focus shifting to Chinese firm CXMT’s plans for new memory product launches, SK hynix (000660) plunged 10.09% and Samsung Electronics (0005930) slid 7.39%.
OliX (226950) plummeted 14.31% after news that its application for Phase 2a clinical trials in New Zealand for its age-related macular degeneration treatment, OLX301A, was rejected. APR (278470) fell 19.60% amid concerns over third-quarter profitability, fueled by a stronger won and rising logistics costs in Europe.
Daehan Optic Cable (0150170) declined 6.68%, pressured by a broader sell-off in U.S. optical communication stocks.
