Despite record semiconductor export results, semiconductor blue chips such as Samsung Electronics and SK hynix weakened, pushing the KOSPI down to the 8,300 level on the 1st. It was seen as the result of dampened investor sentiment amid overlapping concerns about foreign investors taking profits and National Pension Service rebalancing. In contrast, the KOSDAQ, which marked its 30th anniversary, closed up more than 1%.
The KOSPI index finished at 8,303.41, down 173.07 points (2.04%) from the previous session. The index opened higher early in the session but turned lower in the morning as foreign selling expanded.
According to the Korea Exchange (KRX) and NEXTRADE (NXT), foreigners were net sellers of 2.3 trillion won in the main board on the day. Individuals bought a net 2.3 trillion won, defending the lower end of the index. Pension funds also sold a net 218 billion won.
Samsung Electronics and SK hynix fell 5.8% and 3.4%, respectively. Samsung Life Insurance and Samsung C&T, which had been strong on expectations of a rise in the value of Samsung Electronics equity, also fell about 3% and in the 7% range, respectively.
Lee Kyung-min, a researcher at Daishin Securities, said, "June semiconductor exports showed that demand for solid-state drives (SSD) remained firm on the back of expanded artificial intelligence (AI) investment," but noted, "The fact that export prices for DRAM and SSD fell slightly from the previous month stoked concerns that semiconductor prices have passed their peak and expanded profit-taking."
Meanwhile, funds that left semiconductors appeared to move to other sectors. The index fell, but 700 stocks gained, far outnumbering the 193 decliners. Unlike the recent concentration of funds in a few semiconductor-centered names, sector rotation spread.
LS Electric (10.71%), Hyundai Rotem (9.71%) and Hanwha Aerospace (9.65%) were strong. Cosmetics stocks such as APR, Amorepacific, and Kolmar Korea also closed higher.
The researcher explained, "Although tech stocks were strong in the U.S. market the previous day, profit-taking in domestic semiconductor names emerged and sector rotation appeared."
The KOSDAQ finished at 929.35, up 13.17 points (1.44%) from the previous session. Foreigners were net buyers of 170 billion won, while individuals and institutions sold a net 77 billion won and 100 billion won worth, respectively.
EcoPro and EcoPro BM, which released a rights issue the previous day, fell about 6% and in the 12% range, respectively. In contrast, front-end semiconductor equipment stocks, which have been strong since the government's "three megaprojects" announcement, extended gains. Jusung Engineering surged 20%, rising to No. 4 in KOSDAQ market capitalization.
Meanwhile, a "30th anniversary ceremony for the opening of the KOSDAQ market" was held at the Conrad Hotel in Yeouido, Seoul, on the day. The Korea Exchange (KRX) proposed directions for improving market structure, including introducing KOSDAQ segments and expanding the delisting of insolvent companies.
In his commemorative speech, Jeong Eun-bo, chairman of the Korea Exchange (KRX), said, "We will revamp the market structure, including a promotion-and-relegation-style segment, to restore the dynamism of the KOSDAQ market," and added, "While swiftly removing insolvent companies, we will expand tailored technology-exception listings so that innovative companies such as AI and defense can list in a timely manner."