Persistent worries over AI investment profitability drag KOSPI down to the 5,533 level
KOSDAQ also retreats 3.62% amid weakness in large-cap biopharmaceuticals and secondary battery stocks
South Korean domestic stock markets closed lower across both the KOSPI and KOSDAQ indices on the 22nd. Following the previous day’s sharp rally, profit-taking emerged alongside intensifying selling pressure centered on electrical & electronic equipment, large-cap biotech, and secondary battery shares, causing both benchmark indexes to reverse course into negative territory in a single day.
According to the Korea Exchange, the KOSPI finished at 5,533.77, down 201.89 points, or 3.52%, from the previous trading session. The KOSDAQ dropped 28.66 points (3.62%) to close at 764.10. The won-dollar exchange rate finished daytime trading at 1,324.2 won, down 1.0 won from the previous session.
The KOSPI opened lower due to profit-taking following its short-term surge a day earlier. During the session, as the Bank of Korea's Monetary Policy Board kept the base interest rate unchanged, ongoing concerns regarding AI investment profitability and geopolitical uncertainties prompted institutional investors to expand selling, particularly in the electrical and electronics sector.
By sector, medical & precision instruments and chemicals dropped 4.7% each, electrical & electronics fell 4.5%, and metals declined 3.3%. Large-cap stocks fell 3.7%, medium-cap stocks 1.7%, and small-cap stocks 1.2%.
In supply and demand, institutional investors net sold 464.4 billion won, while foreign investors and retail investors net bought 59.2 billion won and 382.5 billion won, respectively. Foreigners net bought 119.4 billion won in general services, 54.3 billion won in transportation equipment & parts, and 30.6 billion won in metals.
Despite the previous day's strength on the U.S. Nasdaq, the KOSDAQ opened lower and saw its losses widen as joint selling by foreign and institutional investors focused on large-cap biotech and secondary battery shares. By sector, finance dropped 5.2%, machinery & equipment fell 5.0%, and non-metals declined 4.7%. Retail investors net bought 220.9 billion won, whereas foreign and institutional investors net sold 122.1 billion won and 100.2 billion won, respectively.
Select Equities Boosted by Strong Earnings and Order Wins Amid Market Rout
Samsung E&A (028050) jumped 16.14% on news that its third-quarter operating profit surged 183.6% year-on-year to 500.6 billion won.
LS Eco Energy (229640) rose 9.96%, highlighted by record-high quarterly earnings with third-quarter revenue of 351.5 billion won and operating profit of 22.2 billion won.
Vinatech (126340) advanced 14.78% on continued large-scale supply contracts for data center supercapacitors.
Hanwha M&S (0220W0) gained 3.90% following news that President Kim Dong-sun plans to expand his tender offer from the previous 16.06 million shares to 26.203 million shares.
Cafe24 (042000) climbed 7.76% after becoming the first domestic commerce platform to adopt 'WebMCP,' a web integration technology for AI agents. Kakao Games (293490) rose 7.30% on expectations of turning a profit by 2027 driven by an expanded lineup of new game releases.
Youngwoo DSP (143540) gained 1.73% on news of securing a display equipment supply contract worth approximately 4.6 billion won with Samsung Display's Vietnam subsidiary.
MS Bio (0013Y0), newly listed on the KOSDAQ market today, finished trading up 70.77% compared to its IPO price of 7,800 won.
Conversely, SK Innovation (096770) fell 8.17% as profit-taking materialized following its recent stock price rebound. SK hynix (000660) dropped 5.49% as renewed concerns over the profitability of AI infrastructure investments resurfaced.
LIG D&A (079550) declined 3.11% amid lingering uncertainties over order acquisitions following the Defense Acquisition Program Administration's decision to restrict its bidding participation eligibility for two years.
