Impact of US Tech Stock Correction... KOSPI Closes at 2760 Level

The KOSPI, which had touched the 2800 level, closed at the 2760 level after falling for two consecutive trading days.

[Image source=Yonhap News]

On the 24th, the KOSPI closed at 2764.73, down 19.53 points (0.70%) from the previous trading day. The index started the day at 2773.61 but declined to the 2750 level during the session.

In the stock market, individual investors defended the index by net buying 465.8 billion KRW, but it was not enough. Foreigners and institutions net sold 387.9 billion KRW and 465.8 billion KRW respectively, causing the index to eventually fall to the 2760 level.

Among the top 10 KOSPI market capitalization stocks, KB Financial Group (1.78%), Celltrion (1.07%), Samsung Electronics (0.75%), Hyundai Motor (0.36%), and Kia (0.31%) rose. SK Hynix fell more than 4%, and Samsung Biologics (-2.13%), LG Energy Solution (-0.6%), and POSCO Holdings (-0.14%) declined.

The continuous decline in the KOSPI is attributed to the adjustment in prices of U.S. technology stocks related to artificial intelligence (AI), which dampened investor sentiment.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "Last week, the U.S. manufacturing Purchasing Managers' Index (PMI) showed strong results, increasing factors for a strong dollar, which led to a general weakness in Asian stock markets. The mixed trend in the U.S. stock market last week and the 3-4% correction in stocks that surged due to the AI boom, such as Nvidia and Broadcom, also had an impact."

The KOSDAQ index closed at 841.52, down 11.15 points (1.31%) from the previous session. The index started slightly down by 0.4 points (0.05%) and then widened its losses.

In the KOSDAQ market, foreigners and institutions net sold 54.5 billion KRW and 175.9 billion KRW respectively, while individuals showed a net buying preference of 237.8 billion KRW.

Among the top market capitalization stocks, Ecopro BM (-2.41%), Enchem (-11.28%), Samchundang Pharm (-8.71%), Classys (-3.11%), and Silicon2 (-3.6%) declined, while Alteogen (1.78%), HLB (2.64%), Daewoo Electronics Materials (3.34%), Techwing (4.68%), and Pharma Research (6.82%) rose.