The KOSPI index started with a drop of more than 4% on the 16th and is hovering around the 6,950 level. The decline in U.S. semiconductor stocks overnight as investors took profits appears to be affecting the domestic market.
As of 9:04 a.m. that day, the KOSPI index was at 6,953.49, down 330.92 points (4.54%) from the previous day. The KOSPI opened at 6,960.50, down 323.91 points (4.45%) from the prior session.
In the main bourse, individuals are net buying 213.4 billion won, while foreigners and institutions are net selling 127.4 billion won and 80.2 billion won, respectively.
Eight of the top 10 stocks by market cap on the main bourse are falling. In particular, SK hynix(000660) and SK Square(402340) are showing declines in the 8% and 9% ranges, respectively. With Samsung Electronics(005930), Samsung Electro-Mechanics, Hyundai Motor, Samsung Life Insurance, and Samsung Biologics all down, LG Energy Solution and KB Financial are rising.
At the same time, the KOSDAQ index was down 1.95% (16.16 points) at 813.27 from the previous day. The KOSDAQ opened the session at 813.32, down 16.11 points (1.94%) from the day before.
In the KOSDAQ market, individuals are net buying 11.4 billion won, while foreigners and institutions are selling 9.7 billion won and 1.6 billion won, respectively.
In the KOSDAQ market as well, eight of the top 10 stocks by market cap are falling. With Alteogen, EcoPro BM, EcoPro, Jusung Engineering, Rainbow Robotics, Wonik IPS, LEENO Industrial, and PSK declining, only Kolon TissueGene and HLB are rising.
Overnight, the three major U.S. indexes closed higher, helped by economic indicators suggesting inflation is easing.
On the New York Stock Exchange (NYSE) that day, the Standard & Poor's (S&P) 500 closed at 7,572.42, up 0.38% from the prior session, and the Nasdaq composite finished at 26,269.23, up 0.62%. The Dow Jones Industrial Average rose 150.25 points (0.29%).
However, as profit-taking continued in artificial intelligence (AI) semiconductor stocks that had surged recently, the Philadelphia semiconductor index closed down in the 2% range. Micron and Intel both fell, and SK hynix American depositary receipts (ADR) also finished down 9% ($17.46) at $176.46.
Kim Yumi, a Kiwoom Securities researcher, said, "As semiconductor stocks fell in New York, the domestic market is likely to retrace part of the previous day's semiconductor-led gains."