The KOSPI reversed from early gains to losses during the morning session on the 21st, as foreign and institutional investors engaged in net selling despite a rebound in US semiconductor stocks and easing won-dollar exchange rate pressure. The index opened 0.58% higher at 6553.88 but turned negative, falling 0.47% to 6495.38 as of 9:15 AM. The reversal occurred as Samsung Electronics maintained strength while SK Hynix declined, and major sectors including autos, financials, and securities showed weakness. Foreign investors sold a net 5.5 billion won while institutions offloaded 218.8 billion won through 9:11 AM, outweighing individual buying of 219.2 billion won. The divergence reflects ongoing volatility driven by the heavy weighting of Samsung Electronics and SK Hynix, which together account for over half of KOSPI's total market capitalization, combined with elevated trading volumes in single-stock leveraged products.
Investor Groups Show Divergent Trading Patterns
According to the Korea Exchange on the 21st, individual investors purchased a net 219.2 billion won in the securities market as of 9:11 AM. In contrast, foreign investors and institutions sold a net 5.5 billion won and 218.8 billion won respectively, exerting downward pressure on the index.
Samsung Electronics and SK Hynix Display Contrasting Moves
Among top market-cap stocks, performance was mixed. Samsung Electronics traded at 246,000 won, up 2,000 won (0.82%) from the previous trading day. Samsung Biologics rose 1.41% and Samsung C&T gained 0.41%.
SK Hynix traded at 1,752,000 won, down 0.68%. Other decliners included SK Square (-0.76%), Samsung Electro-Mechanics (-1.49%), Hyundai Motor (-3.76%), LG Energy Solution (-0.63%), Samsung Life Insurance (-1.82%), KB Financial (-2.13%), Hyundai Mobis (-2.86%), and Hana Financial Group (-3.82%).
Sector Performance Varies Widely Across Industries
By sector, the electrical and electronics industry declined 0.04%, showing relative resilience. Machinery and equipment fell 1.91%, securities dropped 2.13%, chemicals decreased 2.25%, transportation equipment and parts declined 2.35%, telecommunications fell 2.50%, and metals dropped 2.88%.
US Markets Close Lower Despite Semiconductor Gains
Overnight in the US, the New York stock market declined slightly as geopolitical uncertainty between the US and Iran persisted despite positive developments in semiconductors and artificial intelligence. The Dow Jones Industrial Average fell 0.6%, the S&P 500 declined 0.2%, and the Nasdaq dropped 0.1%.
Micron and SanDisk rose 1.9% and 2.7% respectively on bargain hunting. News of Alphabet's new AI chip development and a partnership between Microsoft and AMD also supported sentiment in AI-related stocks. However, strong remarks from US President Donald Trump regarding US military casualties and additional airstrikes constrained investor sentiment.
Analysts Identify Rebound Factors Amid Volatility
Securities firms expect high volatility to continue for the time being, given that Samsung Electronics and SK Hynix account for over half of KOSPI's total market capitalization and trading volume in single-stock leveraged products remains elevated.
However, some analysts note that rebound factors are accumulating in terms of valuation and earnings. KOSPI's 12-month forward price-to-earnings ratio has fallen below 6x, and 12-month forward operating profit estimates have been revised upward by 6.8% since July, contrasting with KOSPI's 23.1% decline over the same period.
Han Ji-young, a researcher at Kiwoom Securities, stated: "Currently, in terms of valuation, earnings, and supply-demand, this is a period where we can expect a rebound after building a bottom rather than further index declines. It is necessary to prioritize a strategy of gradually increasing positions through split purchases, centered on semiconductors where the recent decline has been excessive."
FAQ
What caused the KOSPI to reverse from gains to losses on the 21st?
The KOSPI opened 0.58% higher at 6553.88 but reversed to a 0.47% decline by 9:15 AM as foreign investors sold a net 5.5 billion won and institutions offloaded 218.8 billion won, outweighing individual buying of 219.2 billion won.
How did Samsung Electronics and SK Hynix perform on the 21st?
Samsung Electronics traded at 246,000 won, up 0.82%, while SK Hynix declined 0.68% to 1,752,000 won, showing divergent performance among the market's largest stocks.
What did Kiwoom Securities analyst Han Ji-young say about the current market outlook?
Han Ji-young stated that the current period allows for expecting a rebound after building a bottom rather than further declines, and recommended prioritizing a strategy of gradually increasing positions through split purchases centered on semiconductors where the recent decline has been excessive.
