Profit-taking and option expiry supply pressure; KOSPI institutional net selling reaches 689.5 billion won.
Selective gains in glass substrate and AI-related stocks; mixed performance following Q3 earnings.
South Korean equity markets saw both the KOSPI and KOSDAQ decline on November 12. While the KOSPI opened higher, bolstered by strength in U.S. technology stocks, it reversed course due to profit-taking following recent gains and supply-side volatility surrounding the option expiry date. The KOSDAQ also surrendered the 700-point level after just one day as foreign selling persisted.
According to the Korea Exchange, the KOSPI closed at 2,534.73, down 32.63 points (0.61%) from the previous trading session. The KOSDAQ fell 8.57 points (1.22%) to close at 696.53. The won-dollar exchange rate ended the day at 1,330.7 won, down 2.9 won.
The KOSPI initially rose on improved investor sentiment following a rally in U.S. tech stocks. However, it turned lower for the first time in three sessions as profit-taking emerged and institutional selling intensified amid option expiry volatility.
By sector, IT services fell 3.1%, insurance 2.3%, chemicals 1.9%, and real estate 1.5%. Large-cap stocks fell 0.6%, while mid- and small-cap stocks declined 1.0% each. In terms of trading activity, institutions and retail investors net sold 689.5 billion won and 202.5 billion won, respectively, while foreigners net bought 367.5 billion won.
The KOSDAQ also retreated after three sessions of gains, pressured by profit-taking and sustained foreign selling, particularly in the machinery and equipment sectors. By sector, metals fell 2.6%, general services 2.2%, and pharmaceuticals 2.1%. Foreigners net sold 353.5 billion won, while institutions and retail investors net bought 43 billion won and 308.2 billion won, respectively.
Selective Gains in Glass Substrate and AI-Related Stocks
Inometry surged 23.14% following reports that it was selected as a supplier of inspection equipment for mass production of glass substrates for Samsung Electro-Mechanics.
Simmtech Holdings rose 12.48% on expectations of increased demand for semiconductor substrates, driven by a sharp rise in Q3 operating profit and expanded AI infrastructure investment.
Vibe Company jumped 24.06% as its achievements in AI transformation (AX) for the financial sector gained traction, while Selvas AI rose 11.25% on news that its proprietary on-device speech synthesis technology was commercialized for Yes24's e-book service.
Hallacast rose 7.96% on prospects of business expansion into power conversion components and lightweight structural parts for humanoid robots, while AP Satellite surged 16.29% after announcing a contract worth approximately 14.7 billion won to develop and supply next-generation satellite communication smartphones.
Individual Stocks Rise on Strong Q3 Earnings and Shareholder Returns
JYP Ent. jumped 16.54% after its Q3 earnings exceeded market expectations, driven by increased album sales and merchandise revenue from its group Stray Kids in the U.S. and Europe.
Daewon Media rose 11.99% on strong Q3 results, while Madup hit the daily upper limit, rising 29.87% after announcing that its cumulative Q3 revenue had already surpassed its total annual revenue from the previous year.
Genians surged 21.04% as its Q3 operating profit reached 3.8 billion won, a 253.0% increase year-on-year, and Cosmax rose 5.32% on solid quarterly performance.
Samyang Foods rose 4.46% following the decision to establish a production subsidiary and a new factory in Vietnam, while Prestige Biologics climbed 6.86% after signing a commercial contract for contract manufacturing of raw drug materials worth approximately 15.5 billion won.
Daehan Shipbuilding rose 5.58% on plans for a 10 billion won share buyback and expanded mid-to-long-term shareholder returns.
Conversely, DB HiTek plummeted 16.36% as its Q3 earnings fell short of market expectations.
Naver also fell 6.43% due to concerns over profitability stemming from increased AI investment costs, despite reporting record-high Q3 revenue, and rumors regarding the potential dismissal of Nvidia CEO Jensen Huang.
Meritz Financial Group plunged 13.05% on poor Q3 results, and NCSoft fell 9.19% despite a turnaround to operating profit, as concerns grew over the slowing growth of its upcoming title, Aion 2.
Nex-I, which debuted on the KOSDAQ today, closed 39.87% lower than its IPO price of 8,000 won. The company specializes in developing antibody therapeutics targeting the causes of resistance to existing immunotherapies.
