The KOSPI fell by more than 3% in early trading, precariously holding the 5,300 line. Concerns over AI (artificial intelligence) profitability triggered by Meta overnight led to a sharp decline centered on AI tech stocks, negatively impacting domestic stock markets.
As of 9:29 a.m. on Friday, the KOSPI stood at 5,356.69, down 147.08 points (2.66%) from the previous trading day. The KOSPI opened while holding the 5,400 line but has been trading below the 5,400 line immediately after the opening bell.
Overnight in New York, strong selling pressure emerged centered on AI tech stocks. Meta’s large-scale AI investment plan triggered concerns over funding burdens and profitability, while renewed geopolitical tensions drove a surge in international oil prices, dampening investor sentiment.
On the 22nd (local time), the NASDAQ Composite Index closed at 26,008.86, down 2.6% from the previous trading day. The S&P 500 Index fell 1.21% to 7,663.43, while the Dow Jones Industrial Average rose 0.02% to 52,867.98. The Philadelphia Semiconductor Index plunged 7% during intraday trading. Major semiconductor stocks including Nvidia, AMD, and Micron fell in tandem, and AI cloud company CoreWeave dropped by about 10%. Meta’s stock price fell by approximately 7% on the day.
A sharp surge in oil prices from the Middle East also weighed on the market. Brent crude futures closed at $113.17 per barrel, up 4% from the previous day, while West Texas Intermediate (WTI) crude oil rose 2.39% to close at $99.47. Amid intense attacks by Yemen’s pro-Iran Houthi rebels on Saudi Arabia, reports that the United States and Israel could conduct additional airstrikes on Iran led to concerns over energy supply instability.
Before the market opened on this day, SK Hynix also announced on the 23rd that it would halt its consideration of Solidigm’s IPO (initial public offering) and pre-IPO promotion. An SK Hynix official stated, “This is not because Solidigm’s growth potential or investment necessity has changed,” adding, “Considering recent capital market conditions and stock price trends, we determined it necessary to re-examine whether an IPO at this time would be the most advantageous choice for SK Hynix and existing shareholders.”
Han Ji-young, a researcher at Kiwoom Securities, forecasted, “The market will open lower due to adjustments in U.S. AI stocks following concerns over Meta’s credit instability, oil price burdens, and other factors,” while adding, “Considering that the negative news from Meta was already partially reflected in domestic stock markets on the previous day and that oversold conditions are valid, we expect a trend where panic selling in early trading is absorbed and losses are recovered during intraday trading.”
In the KOSPI market (based on the integration of Korea Exchange and NextTrade) on this day, foreign investors have made net sales of 147.4 billion won. Retail investors and institutional investors have made net purchases of 53.6 billion won and 96.2 billion won, respectively. Among institutional investors, pension funds and others are buying 84.5 billion won worth of stocks.
Among KOSPI sectors, machinery and equipment are down in the 5th% range. Securities, electrical and electronics, metals, manufacturing, and construction are falling by more than 4%. Distribution, medical and precision instruments, chemicals, and finance are down in the 3rd% range. Electricity and gas, telecommunications, and insurance are falling by more than 2%. IT (information and communications) services, paper and wood, etc., are down by more than 1%. Entertainment and culture, general services, etc., are trading slightly lower. Among all sectors, only pharmaceuticals show a rise in the 1st% range.
Among top KOSPI market capitalization stocks, Samsung Electronics and SK Hynix are down in the 2nd% and 1% ranges, respectively. SK Square and Samsung Electro-Mechanics, which have equity and business ties with them, are falling by more than 1% and more than 6%, respectively. Samsung Life Insurance is down in the 2nd% range, and Samsung C&T is down in the 3rd% range. KB Financial Group is falling by more than 3%. LG Energy Solution and Hyundai Motor are down by more than 2%. Among top 10 market capitalization stocks, only Samsung Biologics is rising by more than 2%.
The KOSDAQ stands at 736.96, down 27.14 points (3.55%) from the previous trading day.
In the KOSDAQ market, retail investors and institutional investors have made net sales of 31.2 billion won and 7.3 billion won, respectively. Foreign investors have made net purchases of 40.9 billion won.
Among KOSDAQ sectors, machinery and equipment, and electrical and electronics are down in the 5th% range. Manufacturing, finance, metals, and chemicals are falling by more than 3%. Distribution, construction, etc., are down in the 2nd% range. Telecommunications, pharmaceuticals, and general services are falling by more than 1%. IT services and entertainment and culture are trading slightly lower. Publishing and media reproduction is the only sector rising by more than 2%.
Among top KOSDAQ market capitalization stocks, Jusung Engineering and Wonik IPS are plunging in the 6th% range. Ecopro and Ecopro BM, and Lino Industrial are down in the 5th% range. RAINBOW Robotics and IoTech are falling by more than 4%. Alteogen and HLB are down in the 2nd% and 1% ranges, respectively.
At 9 a.m. on this day in the Seoul foreign exchange market, the won/dollar exchange rate is trading at 1,325.7 won, down 0.8 won from the previous trading day.
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