With the debate over an artificial intelligence (AI) bubble continuing, Korea's stock market also opened lower. As U.S. stocks fell overnight, foreign investors are net sellers in the domestic market. Large-cap semiconductor stocks with a heavy weighting in market capitalization are declining.
On the 19th, the KOSPI index started trading at 3,966.64, up 13.02 points (0.33%) from the previous day, but turned lower immediately after the open. From early trading, foreigners have a selling advantage of more than 300 billion won. With institutions on the sidelines, only individuals are net buyers.
As the KOSPI index's early gains widened, even the 3,900 level was surrendered. As of 9:25 a.m., the KOSPI index is moving around the 3,890 level, down about 1.5% from the previous trading day.
Overnight, U.S. stocks fell across the board. Ahead of Nvidia's earnings release, most mega-cap tech stocks declined on concerns about overheated AI investment.
In particular, remarks by Alphabet Chief Executive Officer (CEO) Sundar Pichai, who acknowledged that "there are irrational elements similar to the dot-com bubble" in today's AI-fueled market, weighed on sentiment. Pichai noted, "If the bubble bursts, no company will be immune."
In this environment, when some investment banks cut target prices for big tech, the sector fell sharply. Nvidia will release earnings early on the 20th, Korea time. Investors' attention is expected to focus there.
The KOSDAQ index is also showing a steep decline. The index started trading at 881.49, up 2.79 points (0.32%) from the previous session, but also reversed lower and is extending losses. As of 9:25 a.m., the KOSDAQ index is moving around the 860 level, down more than 1.6%.
Foreign investors are net sellers of 70 billion won, while institutions and individuals have a buying advantage. Rainbow Robotics is rising, but the rest of the top market-cap stocks, including Alteogen and EcoPro BM, are falling sharply.