[Edaily Reporter Park Sun-Yeop ] The KOSPI is fluctuating between gains and losses in early trading as it searches for direction. Although investor sentiment was shaken by continued weakness in artificial intelligence (AI) semiconductor stocks on U.S. markets overnight, the index is showing increased volatility as the perception that the previous day’s sharp decline was an oversold condition also comes into play.

According to MP Doctor on the 3rd, as of 9:11 a.m. that day, the KOSPI stood at 7,673.38, down 25.29 points (0.33%) from the previous trading day.
In terms of supply and demand, foreign investors are net sellers of 590.8 billion won worth of stocks. In contrast, retail investors and institutions are net buyers of 526.5 billion won and 27.8 billion won, respectively. Program trading, combining arbitrage and non-arbitrage trades, shows a net selling position of 247.7 billion won.

Overnight, major U.S. stock indices closed mixed. While the Dow Jones Industrial Average hit a new all-time high, AI semiconductor stocks continued their downward trend for the second consecutive day. This is interpreted as a result of both profit-taking and sector rotation, driven by growing doubts about the sustainability of the rally in the semiconductor sector, which has surged sharply in recent months.
The Dow Jones Industrial Average closed at 52,900.07, up 594.83 points (1.14%) from the previous trading day. The S&P 500 index rose 0.01 points (0.00%) to 7,483.24, while the Nasdaq Composite Index closed at 25,832.67, down 207.36 points (0.80%).
Securities analysts believed that the continued weakness in the U.S. Philadelphia Semiconductor Index and the 1% decline in KOSPI 200 overnight futures could weigh on the market early in the session. However, there is also speculation that attempts at a recovery during the trading session could emerge, driven by a combination of factors, including diminished expectations for a September interest rate hike by the Federal Reserve (Fed) and the perception that the KOSPI’s 7% plunge the previous day represented an oversold condition.
Han Ji-young, an analyst at KIWOOM Securities, said, “This is a critical moment to distinguish whether the sharp decline in semiconductor stocks stems from damaged fundamentals or is merely market noise,” adding, “I believe it is excessive to interpret reports of Meta’s entry into the cloud business—utilizing its surplus computing power—as a sign of overinvestment in AI and to feel anxious as a result.”
Han continued, “Given that investor sentiment has cooled in the short term, the market may react more sensitively than usual to negative news flows,” explaining, “We must remain open to the possibility of intermittent increases in overall market volatility and the potential for additional buy- and sell-side circuit breakers.”
However, he noted, “We believe that a slowdown in AI demand has not yet materialized, and the earnings fundamentals of the KOSPI—including the semiconductor sector—remain intact,” adding, “It is also important to consider that events capable of reversing the market sentiment, such as SamsungElectronics’ preliminary earnings announcement and SK hynix’s ADR listing next week, are on the horizon.”
He advised that, at this point, rather than betting on a price decline, a more effective strategy would be to prepare for a potential index rebound by gradually accumulating positions in sectors that saw significant declines the previous day—such as semiconductors, MLCCs, securities, and power equipment.
On the KOSPI market today, large-cap stocks are down 0.41%. Mid-cap and small-cap stocks are down 1.66% and 0.66%, respectively.
By sector, the market is generally weak. The construction sector is down 4.07%, while IT services and machinery & equipment are down 3.40% and 3.33%, respectively. In contrast, the pharmaceutical and securities sectors are up 1.52% and 1.35%, respectively.
Top-market-cap stocks are showing mixed performance. SamsungElectronics(005930)is trading at 296,500 won, up 10,500 won (3.67%) from the previous trading day. SK hynix(000660)is trading at 2.23 million won, up 43,000 won (1.97%). SAMSUNG BIOLOGICS(207940)(2.06%) and HANWHA AEROSPACE(012450)(3.67%) are also showing gains.
On the other hand, SKSQUARE(402340)(-2.30%), SamsungElectroMechanics(009150)(-2.70%), HyundaiMotor(005380)(-2.07%), and LG Energy Solution(373220)(-0.56%) are showing weakness.
The KOSDAQ index is also down in early trading. At this time, the KOSDAQ index stands at 852.64, down 14.08 points (1.62%) from the previous trading day.
In the KOSDAQ market, foreign investors are net sellers of 53.1 billion won worth of stocks. Retail investors and institutions are net buyers of 46.3 billion won and 5.1 billion won, respectively. Program trading, combining arbitrage and non-arbitrage trades, shows a net selling position of 77.6 billion won.