Revived concerns over AI credit and profitability pull KOSPI back down to the 5,500 mark
KOSDAQ also retreats 3.33%; transport equipment, biotech, and secondary battery shares remain weak
South Korean equity markets closed lower across the board on October 20. Investor sentiment chilled due to mounting anxieties over artificial intelligence (AI) investments and geopolitical instability, snapping a three-day winning streak for both major indices.
According to the Korea Exchange (KRX), the benchmark KOSPI tumbled 215.27 points, or 3.73%, to finish at 5,552.74. The tech-heavy KOSDAQ dropped 26.92 points, or 3.33%, to close at 781.97. In the onshore foreign exchange market, the won-dollar exchange rate settled down 2.2 won at 1,328.1 won per dollar at the close of daytime trading.
The KOSPI opened lower, pressured by credit and profitability jitters surrounding AI-related firms and growing geopolitical unease. As the won's intraday gains widened, a simultaneous sell-off by foreign investors and institutions—concentrated in transport equipment, parts, and electrical and electronic sectors—deepened the index's decline to over 3%.
By sector, transport equipment and parts dropped 6.6%, medical and precision instruments fell 6.4%, chemicals lost 6.1%, and metals retreated 6.0%. Large-cap stocks fell 3.8%, medium-caps shed 3.3%, and small-caps declined 2.2%.
In the supply-demand arena, foreign investors and institutional investors net-sold 541.0 billion won and 1.0011 trillion won, respectively, while retail investors net-bought 903.1 billion won. Foreigners unloaded 338.4 billion won in electrical and electronics, 106.4 billion won in transport equipment and parts, and 41.9 billion won in chemicals.
The KOSDAQ also started lower despite overnight gains in the U.S. Nasdaq and Philadelphia Semiconductor indices, with losses accelerating as large-cap biotech and secondary battery issues weakened. Sector-wise, finance fell 5.7%, non-metals dropped 4.5%, and construction lost 4.3%. Foreigners and institutions net-sold 186.4 billion won and 110.6 billion won, respectively, while retail investors net-bought 294.2 billion won.
Robotics and Order-Driven Stocks Rally Amid Market Rout
G2G Bio (456160) surged 14.91% on news that it signed an evaluation contract to apply its sustained-release injectable platform, 'Innolamp,' to a novel drug candidate from China's UBT.
Korea Circuit (007810) advanced 12.40% following optimistic third-quarter earnings forecasts and subsequent target price upgrades by brokerage firms. Yest (122640) gained 5.61% on expectations of a sharp spike in third-quarter operating profit driven by surging sales of high-pressure sub-annealing (HPA) equipment.
Energy storage system (ESS) related contracts also propelled stock gains. Unitechno (241690) rose 6.67% after being selected as a North American ESS component supplier for a global battery company. Vinatech (126340) jumped 11.83% after inking a 130 billion won supply deal for data center supercapacitors with Taiwan’s Acbel, a figure equivalent to 149.60% of its last year's revenue.
Robotics stocks showed strength as well. Everybot (270660) rose 9.22% on expectations for its AI autonomous driving robot business, while HT Robotics (396300) gained 7.13% amid growing market attention on its order backlog. Big Wave Robotics (0035S0) skyrocketed 23.97% on news of the launch of its AI-based robotic automation platform.
Hyungji Elite (093240) hit the daily upper limit, surging 30.00% bolstered by the postponement of delisting procedures related to market capitalization shortfalls and the resumption of trading following a stock consolidation.
Defense and Shipbuilding Shares Slump as AI Investment Worries Persist
Hyundai Rotem (064350) plummeted 13.70% after its third-quarter operating profit missed market expectations, compounded by intensifying uncertainties surrounding overseas defense orders.
LS Eco Energy (229640) sank 14.59% over persistent anxieties regarding the expansion of AI infrastructure investments. SK hynix (000660) retreated 4.23% amid controversy over potential double-listing issues concerning Solidigm, its U.S.-listed subsidiary pursuing a Nasdaq listing.
Elice Group (0158S0), newly debuted on the KOSDAQ market, finished its trading session down 32.04% compared to its initial public offering (IPO) price of 90,500 won.
