The domestic stock market closed with a sharp drop of over 3% amid selling pressure on semiconductor stocks that had accumulated during the Hangul Day holiday period. Concerns about the growth potential of the artificial intelligence (AI) industry, which spread in the U.S. New York Stock Exchange during the holiday, led to declines in domestic semiconductor stocks following the U.S. market. The securities industry raised the possibility that the domestic stock market could be engulfed in volatility around the release of the U.S. consumer price index (CPI), a variable cited in discussions about U.S. interest rate policy (evening of the 14th, Korea time).
The KOSPI index closed at 6384.24, down 241.69 points (3.65%) from the previous trading session. After opening at 6578.17, down 47.76 points (0.72%), the KOSPI narrowed its decline to 6589.69 (down 36.24 points, 0.55%) in early trading. However, as selling by foreign investors intensified, it fell to 6368.49, down 257.44 points (3.89%), during the session. By investor type, foreign investors and institutional investors made net sales of 218.6 billion won and 110.7 billion won, respectively. Retail investors made net purchases of 146.74 billion won.
Samsung Electronics closed at 250,500 won, down 4.39%. SK Hynix also ended trading at 1,605,000 won, down 4.52%.
Among top market capitalization stocks, △SK Square (-6.29%), △Samsung Electric (-3.82%), △Samsung Biologics (-1.48%), △Hyundai Motor (-1.39%), △LG Energy Solution (-0.75%), and △Samsung Life Insurance (-0.56%) declined.
Although the New York Stock Exchange rose during the holiday period, memory semiconductor stocks showed weakness. On the 9th (local time), memory semiconductor stocks such as Micron (-0.66%), SanDisk (-1.72%), and SK Hynix American Depositary Receipts (ADR) (-0.86%) declined. Previously, concerns about the growth potential of the AI industry were raised after the UK's Financial Times reported that OpenAI's annualized revenue was $20 billion lower than previously stated levels.
Researcher Cho Jun-ki at SK Securities said, "The October FOMC (Federal Open Market Committee) is likely to hold its base rate steady (82% probability of a hold based on CME FedWatch), influenced by the shock in employment indicators, but this is not yet certain." He added, "There is a high possibility that consensus estimates will move sharply again after the release of U.S. inflation indicators, including the September consumer price index scheduled for the evening of Wednesday (the 14th) this week."
The securities industry also observed that even if external uncertainty exerts downward pressure on the index, it would show downside resilience. Kiwoom Securities presented an expected range of 6450 to 7000 points for the KOSPI this week. Researcher Han Ji-young at Kiwoom Securities said, "It has become a critical time to assess how much the 2027 earnings estimates for Samsung Electronics and SK Hynix can be revised upward, and the strength of the overall KOSPI earnings outlook revision linked to this." She added, "Even if external uncertainties continue, such as cautious sentiment ahead of the U.S. September CPI release and volatility in U.S. 10-year Treasury yields, there is a possibility that the index will maintain downside resilience and show a trend of recovering to the high 6000-point range."
Researcher Lee Young-won at Heungkook Investment Securities said, "Risk factors such as the possibility of increased volatility after the U.S. midterm elections and changes in global inflation pressure, including energy prices, should also be considered." However, he added, "Expectations for a phase of resolving undervaluation that reflects the profitability of the Korean economy and major companies appear valid, given that the basic structure of expectations for AI growth and constraints from rising interest rates is maintained."
The KOSDAQ index closed at 849.19, down 43.08 points (4.83%) from the previous day. After opening at 885.53, down 6.74 points (0.76%), it widened its decline and was pushed down to 849.07, down 43.20 points (4.84%), during the session. Institutional investors and foreign investors made net sales of 222.8 billion won and 27 billion won, respectively, while retail investors made net purchases of 248.8 billion won. Among top market capitalization stocks, △Lino Industrial (-11.15%), △Simtech (-10.36%), △EcoPro BM (-10.25%), △RAINBOW Robotics (-8.86%), △EcoPro (-8.49%), and △Jusung Engineering (-5.42%) declined.
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