KOSPI continued its daily decline due to the ripple effects of the 'blue wave,' in which the U.S. Democratic Party took control of both the House and Senate. SK hynix plunged more than 10% amid concerns over regulations on AI data centers. The index also dipped below the 5,000-point mark during intraday trading.
On Friday, KOSPI closed at 5,059.69, down 324.11 points (6.02%) from the previous trading day. KOSPI plunged more than 8% from the start of trading and fell as low as 4,911.28 during the session.
This marked the first time since February 6 that KOSPI dropped below the 5,000-point line intraday, a span of 273 days. A Stage 1 circuit breaker was triggered at 9:03 a.m., halting trading for 20 minutes.
This was due to growing anxiety over the possibility that the U.S. Democratic Party would strengthen regulations on AI data centers. On the 5th (local time), the NASDAQ Composite Index fell by 5.52%. The S&P 500 Index dropped by 4.36%, and the Dow Jones Industrial Average declined by 3.44%. The Philadelphia Semiconductor Index slid more than 12% on that day.
Lee Kyung-min, head of FICC Research at Daishin Securities, said, "The main cause of today's crash was concerns over strengthened AI data center regulations following the U.S. midterm elections."
Lee said that deteriorating funding conditions for AI infrastructure also weighed on investor sentiment.
He continued, "Supply and demand instability intensified with news including Microsoft's review of its NeoCloud project, concerns that CoreWeave's corporate bond yield would break through the 17th% line, Space X's CDS hitting an all-time high amid expanding credit anxiety, and reports of large-scale position liquidations by Leopold Aschenbrenner's AI hedge fund."
However, he said that the possibility of a complete halt to AI data center construction is limited, and market concerns are "excessive."
In the KOSPI market, foreign investors made net sales of 2.7688 trillion won. Retail investors and institutional investors made net purchases of 604.9 billion won and 1.7 trillion won, respectively.
Among KOSPI sectors, electrical/electronics and medical/precision instruments fell in the 7% range. Manufacturing and machinery/equipment dropped in the 6% range, securities in the 5% range, while insurance and finance showed declines in the 4% range. Conversely, telecommunications rose by 2.1%, and IT (information technology) increased by 1.51%.
Among the top 20 stocks by market capitalization on KOSPI, only Naver (NAVER) jumped by 2.87%. All others declined. SK hynix plunged by 10.44%. SK Square also slid by 10.61%. Samsung Electronics fell by 6.35%, and Samsung Electro-Mechanics dropped by 7.84%.
KOSDAQ recorded 644.27, down 34.14 points (5.03%) from the previous trading day.
In the KOSDAQ market, retail investors and foreign investors made net sales of 110.3 billion won and 101.4 billion won, respectively. Institutional investors made net purchases of 205.6 billion won.
Among KOSDAQ sectors, all sectors declined except for entertainment/culture, which closed unchanged. Medical/precision instruments fell by 8.57%. Metals, non-metals, and machinery/equipment slid more than 7%. Electrical/electronics dropped in the 6% range, and manufacturing fell in the 5% range.
Among top KOSDAQ stocks by market capitalization, PSK Holdings, ISC, and PSK all declined by more than 10%. Wonik IPS and HPSP closed weak in the 8% range. Alteogen showed a decline in the 5% range, Ecopro in the 6% range, and Ecopro BM in the 7% range.
Conversely, Pharma Research rose by 4.22%, and Peptron jumped by 3.84%. Robotis also climbed by 1.37%.
The won/dollar exchange rate closed daily trading at 1,342.1 won, up 0.6 won from the previous closing price.
in STOCK
