After falling more than 2% intraday and sliding to the 8,200 level, the KOSPI closed slightly lower around the 8,390 level. The government's announcement of the "Korea's Grand Leap: Three Mega Projects" plan also fell short of sparking a rebound in the market.
As large semiconductor stocks struggled, rotation unfolded in the domestic market. The KOSDAQ index surged 8% by the close, with a buy-side sidecar triggered intraday.
On the 29th, the KOSPI index closed at 8,394.65, down 0.20% (16.56 points) from the previous session.
Starting the day at 8,334.28, down 76.93 points (0.91%), the KOSPI index deepened its losses, slipping to the 8,200 level intraday. Then at 2 p.m., after the government announced the "Korea's Grand Leap: Three Mega Projects" plan, it reversed higher and crossed the 8,400 level, but ultimately finished lower below 8,400.
Foreign selling was intense on the Korea Exchange's main board. Foreign investors posted net selling of more than 8.3 trillion won. Individuals and institutions bought more than 4.8 trillion won and 3.2 trillion won, respectively, in a defensive move, but it was not enough to prevent the index from falling.
The drop is seen as stemming from weakness in semiconductor shares that had been propping up the KOSPI. News that OpenAI delayed its initial public offering (IPO) schedule and that Apple raised product prices on concerns about semiconductor expense pressures appears to have weighed on the chip sector.
In particular, reports that Apple is reviewing the adoption of products from China's Changxin Memory Technologies (CXMT) in response to the recent surge in memory chip prices dragged down shares of memory chipmakers.
Lee Kyung-min, a researcher at Daishin Securities, said, "Concerns about expense pressures from rising chip prices and extreme volatility have weakened investment sentiment toward the semiconductor sector," and added, "These developments led to deteriorating investor sentiment toward domestic chip stocks, and given that the sector had driven extreme volatility in the domestic market recently, heightened caution fueled persistent selling."
Although the government announced the "Korea's Grand Leap: Three Mega Projects" plan in the afternoon, the impact on the market was limited. Samsung Electronics and SK hynix fell about 4% and in the low 1% range, respectively, by the close.
However, the severe concentration in semiconductors eased. On the Korea Exchange's main board, 820 stocks rose and 88 fell.
Meanwhile, the KOSDAQ index, which had struggled for some time, soared for the first time in a while. The KOSDAQ index closed at 920.57, up 8.13% (69.20 points) from the previous session. A buy-side sidecar was also triggered during the morning session.
On the KOSDAQ market, foreign investors posted net buying of 167.6 billion won and institutions 508.4 billion won. Individuals sold 660.7 billion won.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, explained, "As the concentration in semiconductors eased, bio and battery-related stocks rebounded."
In particular, with rotation flowing in, previously neglected secondary battery stocks such as EcoPro and EcoPro BM rose sharply. LigaChem Biosciences, which was reported to receive an equity investment from the Public Growth Fund, also jumped to close.