[Edaily Reporter Shin Ha-yeon ] The KOSPI has significantly narrowed its losses in the afternoon of the 23rd and is currently trading around the 5,490 level. Although it fell to the 5,300 level early in the session due to the fallout from last night’s sharp decline in U.S. artificial intelligence (AI) and semiconductor stocks, it recovered to around the 5,500 level as institutional buying and the perception that the decline was excessive took hold. In particular, SK hynix(000660)turned positive following news that its subsidiary, Solidym, had withdrawn its plans for an initial public offering (IPO) in the U.S.

According to MP Doctor on the 23rd, as of 1:38 p.m. today, the KOSPI is trading at 5,491.90, down 41.87 points (0.76%) from the previous trading day. The index opened at 5,403.17, down 2.36% from the previous session, and fell as low as 5,305.98 in early trading. It then quickly recovered, rising as high as 5,502.20 during the session.

In terms of supply and demand, foreign investors are net sellers of 942.5 billion won on the stock market. In contrast, institutional investors are net buyers of 688.3 billion won, and retail investors are net buyers of 213.2 billion won, absorbing the selling pressure. Program trading showed a net buying position of 27.1 billion won in arbitrage trading and a net selling position of 680.3 billion won in non-arbitrage trading, resulting in an overall net selling position of 653.2 billion won.

Top-market-cap stocks are showing mixed performance. SamsungElectronics(005930)is trading at 213,000 won, down 0.70% from the previous trading day. In contrast, SK hynix(000660)has turned positive, rising 2.62% to 1,255,000 won. SKSQUARE(402340)is also up 0.80%.

SK hynix’s shift to gains is believed to be influenced by its subsidiary Solidigm’s decision to withdraw its U.S. stock market listing. Following reports that Solidigm has decided to halt its U.S. IPO plans, expectations are rising that concerns previously raised regarding dual listings and the dilution of existing shareholder value may be alleviated.

In addition, SAMSUNG BIOLOGICS(207940)is surging 7.79%, and Samsung Life Insurance(032830)is also up 1.04%. On the other hand, LG Energy Solution(373220)(-2.05%), SamsungElectroMechanics(009150)(-3.84%), HyundaiMotor(005380)(-3.15%), and KB Financial Group(105560)(-4.17%) are trading lower.

The sharp drop in early trading was driven by weakness in U.S. tech stocks overnight. In the U.S. stock market, semiconductor stocks such as NVIDIA and Micron plummeted as concerns over Meta’s deteriorating cash flow and the burden of AI investments resurfaced, and the Philadelphia Semiconductor Index also fell by more than 6%. Additionally, rising international oil prices due to escalating tensions in the Middle East weighed on investor sentiment toward risky assets.

Han Ji-young, an analyst at KIWOOM Securities, stated, “Considering that the negative news regarding Meta had already been partially priced into the domestic stock market the previous day and that the market is still perceived as oversold, we expect the market to absorb the panic selling seen in early trading and gradually recover its losses during the session.”

At the same time, the KOSDAQ Index is trading at 746.09, down 18.01 points (2.36%) from the previous trading day. The index opened at 748.32, fell as low as 732.87 during the session, and then partially recovered its losses. The intraday high was 749.19.

In the KOSDAQ market, retail investors are the only group showing net buying, with 102.6 billion won. Foreign and institutional investors are net sellers of 43.5 billion won and 60.5 billion won, respectively. Program trading shows a net buying position of 4.2 billion won in arbitrage trading and a net selling position of 35.3 billion won in non-arbitrage trading, resulting in an overall net selling position of 31.1 billion won.