[Edaily Reporter Shin Ha-yeon ] The KOSPI is down by more than 3% on the 23rd. Investor sentiment is under pressure as semiconductor stocks plummeted overnight on U.S. markets amid renewed concerns over artificial intelligence (AI) investments and funding burdens, compounded by a surge in international oil prices due to escalating tensions in the Middle East.

According to MP Doctor on the 23rd, as of 9:08 a.m. today, the KOSPI is trading at 5,321.49, down 212.28 points (3.84%) from the previous trading day. The index opened at 5,403.17, down 2.36% from the previous trading day, and rose as high as 5,433.77 during the session, but subsequently extended its losses, falling to 5,321.49.

Overnight, the New York stock market experienced a sharp correction, led by technology stocks. On the 22nd (local time), the Dow Jones Industrial Average closed at 52,867.98, up 0.02% from the previous session, but the S&P 500 index fell 1.21% to 7,663.43, and the tech-heavy Nasdaq Composite Index closed at 26,008.86, down 2.60%. The Philadelphia Semiconductor Index plunged 6.72%.

Concerns about the investment burden and cash flow of AI-related companies resurfaced. Meta’s stock plunged 6.98% despite solid earnings, as its cash flow turned from a $780 million surplus in the previous quarter to a $2.12 billion deficit. NVIDIA fell 4.40%, Micron 6.26%, AMD 8.10%, and Broadcom 4.31%.

Han Ji-young, an analyst at KIWOOM Securities, stated, “The market is expected to open lower today due to a correction in U.S. AI stocks stemming from concerns over Meta’s credit stability, as well as pressure from oil prices.” However, she added, “Considering that the negative news regarding Meta was largely priced into the domestic stock market yesterday and that the market is still perceived as oversold, we expect the market to absorb the initial wave of panic selling early in the session and gradually recover its losses during the trading day.”

Pressure from rising oil prices stemming from the Middle East also persists. On the 22nd, WTI rose 2.39% from the previous session to $99.47 per barrel, while Brent crude climbed 4.0% to $113.17. This was driven by renewed concerns over supply disruptions as military tensions in the Middle East escalated.

One analyst noted, “Apart from AI-related concerns, factors currently making the domestic stock market vulnerable—such as escalating military tensions in the Middle East and concerns over a supply-demand gap following the conclusion of SK hynix’s share buyback—cannot be viewed as new negative factors.” However, he added, “As existing negative factors are taking center stage in turn, repeatedly triggering stock price declines, market participants’ confidence is being significantly eroded.”

In terms of supply and demand, foreign investors are currently net sellers of 123.6 billion won on the KOSPI market. In contrast, institutional investors are net buyers of 108.3 billion won, and retail investors are also net buyers by 11.0 billion won. Program trading shows a net buying position of 54.6 billion won in arbitrage trading and a net selling position of 196.3 billion won in non-arbitrage trading, resulting in an overall net selling position of 141.7 billion won.

Most of the top market-cap stocks are trading lower. SamsungElectronics(005930)is trading at 204,000 won, down 4.90% from the previous trading day. SK hynix(000660)is trading at 1,176,000 won, down 3.84%. SK hynix announced that it has decided to halt the initial public offering (IPO) of Solidigm, its U.S.-based NAND and solid-state drive (SSD) subsidiary; however, its stock price today appears to be more heavily influenced by the fallout from the sharp decline in U.S. semiconductor stocks.

In addition, SamsungElectronics(1P)(005935)(-4.37%), SKSQUARE(402340)(-4.26%), LG Energy Solution(373220)(-3.97%), SamsungElectroMechanics(009150)(-8.21%), HyundaiMotor(005380)(-4.48%), and KB Financial Group(105560)(-3.86%) are all trading lower. In contrast, SAMSUNG BIOLOGICS(207940)is up 3.23%.

By sector, machinery and equipment are down by around 4%, and most other sectors—including securities, metals, electrical and electronics, transportation equipment and parts, chemicals, retail, manufacturing, construction, finance, electricity and gas, medical and precision instruments, insurance, telecommunications, textiles and apparel, paper and wood, and transportation and warehousing—are also declining.

At the same time, the KOSDAQ Index is trading at 733.63, down 30.47 points (3.99%) from the previous trading day. The index opened at 748.32, down 2.07% from the previous day, and rose as high as 749.19 during the session, but subsequently extended its losses, falling to 733.63.

In the KOSDAQ market, foreign investors are the only net buyers, with net purchases totaling 23.1 billion won. Retail investors and institutional investors are net sellers, with net sales of 9.6 billion won and 11.0 billion won, respectively. Program trading shows a net buying position of 42.5 billion won overall, with 1.2 billion won in arbitrage trading and 41.3 billion won in non-arbitrage trading.

Among the top market-cap stocks, Alteogen Inc.(196170)(-1.52%), ECOPRO CO., LTD(086520)(-4.53%), ECOPRO BM CO., LTD.(247540)(-5.30%), Rainbow Robotics(277810)(-4.25%), JUSUNG ENGINEERING Co.,Ltd.(036930)(-5.78%), EO Technics Co., Ltd.(039030)(-3.66%), and LEENO Industrial Inc(058470)(-5.14%) are all experiencing sharp declines.

Regarding future strategies, one analyst stated, “Given that the KOSPI has plummeted by around 19.1% since October, it is reasonable to anticipate occasional rebounds based on the perception that the decline has been excessive.” The analyst added, “At this point, the best course of action is to adopt a wait-and-see approach while monitoring changes in the credit risk of AI companies and shifts in foreign investor sentiment, as the intensity of selling by foreign investors has weakened this week.”