[Edaily Reporter Kim Hyung-il ] While artificial intelligence (AI)-related stocks performed strongly on U.S. markets, the domestic stock market has been extending its losses into the afternoon. This is believed to be due to a combination of profit-taking following the sharp rallies over the past two days and supply-demand pressures stemming from option expiration. The KOSPI slipped to the 5,350 level, and the KOSDAQ fell more than 1%, dropping below the 700 mark.

According to MP Doctor on the 12th, as of 1:39 p.m., the KOSPI stood at 5,355.49, down 19.87 points (0.35%) from the previous trading day. The KOSPI opened higher early in the session but turned lower and has continued to trade lower.

At the same time, the KOSDAQ stood at 694.94, down 10.16 points (1.44%) from the previous trading day. Although the KOSDAQ briefly recovered the 700-point mark during the morning session, the decline accelerated in the afternoon, pushing it back below the 700-point mark.

The number of declining stocks has also risen significantly. On the KOSPI market, 170 stocks rose, 32 remained unchanged, while 709 fell. On the KOSDAQ market, 474 stocks rose, 63 remained unchanged, and 1,219 fell.

On the KOSPI, mid- and small-cap stocks saw larger declines than large-cap stocks. The large-cap index fell 0.22%, while the mid-cap and small-cap indices dropped 2.07% and 1.49%, respectively. By sector, IT services recorded the largest decline, falling 3.34%. The chemical and real estate sectors also showed weakness, falling 3.10% and 3.07%, respectively.

Among the top stocks by market capitalization, SamsungElectronics(005930)rose 1.46% to 209,000 won, while SamsungElectronics(1P)(005935)climbed 3.03% to 170,700 won. Samsung Life Insurance(032830)also gained 1.62%. In contrast, LG Energy Solution(373220)fell 2.24%, and HyundaiMotor(005380)and SamsungElectroMechanics(009150)dropped 2.39% and 1.95%, respectively. SK hynix is trading flat at 1,277,000 won.

On the KOSDAQ, the financial sector fell 3.05%, and other sectors such as metals (-3.00%) and general services (-2.79%) also showed weakness. Among the top market-cap stocks, Alteogen Inc.(196170)fell 4.36%, while ECOPRO CO., LTD(086520)and JUSUNG ENGINEERING Co.,Ltd.(036930)each dropped 3.81%. ECOPRO BM CO., LTD.(247540)fell 2.61%, and HLB INC.(028300)dropped 2.42%. On the other hand, SIMMTECH Co., Ltd.(222800)rose 2.14%, and LEENO Industrial Inc(058470)and Rainbow Robotics(277810)also gained 0.77% and 0.14%, respectively.

In terms of supply and demand, retail investors are net buyers in both markets, while foreign and institutional investors are net sellers. As of 1:39 p.m., retail investors had net purchased 320.6 billion won on the KOSPI and 438.3 billion won on the KOSDAQ. In contrast, foreign investors net sold 23.6 billion won on the KOSPI and 405.7 billion won on the KOSDAQ. Institutional investors also net sold 739.1 billion won on the KOSPI and 36.2 billion won on the KOSDAQ.

Overnight, U.S. stock markets closed higher, buoyed by strength in AI-related stocks. On the 11th (local time), the Dow Jones Industrial Average rose 0.5% from the previous trading day, while the S&P 500 and the Nasdaq Composite Index rose 1.3% and 1.6%, respectively. The Philadelphia Semiconductor Index surged 5.7%.

CoreWeave, an AI data center provider, soared 24.7% on the back of strong earnings and easing concerns over its funding. Micron, SanDisk, and Navius also rose 11.9%, 13.7%, and 15.4%, respectively. News that Anthropic had raised its funding target also bolstered investor sentiment toward the AI sector.

However, in the domestic stock market, the strength of U.S. AI stocks has not translated into a clear upward momentum. With positive news regarding CoreWeave and Anthropic already priced in, uncertainty surrounding NVIDIA and a wait-and-see attitude ahead of the earnings announcement by neo-cloud provider Nevius appear to be weighing on the market. NVIDIA rose 2.9% overnight but fell 8.6% in after-hours trading. Further controversy surrounding CEO Jensen Huang and reports regarding the board of directors have dampened investor sentiment.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, said "Despite the strength of U.S. AI-related stocks, the domestic stock market is fluctuating within a narrow range as it has already priced in positive news regarding CoreWeave and Anthropic, while uncertainty surrounding NVIDIA and a wait-and-see attitude ahead of Nebius’s earnings report are weighing on the market," he said. "With the options expiration date approaching, foreign investors are showing a slight net buying position in KOSPI spot shares, while also net buying call options and net selling put options."