The South Korean stock market started with a decline, including a nearly 6% drop in NVIDIA, in the aftermath of the mixed employment indicators announced last weekend.
As of 9:19 a.m. on the 11th, the KOSPI points at 2670.49, down 9.86 points (0.37%) from the previous trading day.
The institutions’ selling pressure was strong. Institutions alone were net sellers of KRW 28.3 billion ($23.8 million). On the contrary, foreigners and individuals net bought KRW 13.9 billion ($11.7 million) and KRW 19 billion ($16 million), respectively.
Over the last weekend, the U.S. stock market fell as profit-taking orders appeared while confirming the February employment report.
On the 8th (local time), the NASDAQ and the S&P 500 index in the U.S. New York Stock Exchange fell 1.16% and 0.65%, respectively. The Dow Jones Industrial Average also fell 0.18%.
In particular, NVIDIA rose over 5% in the early market, renewing its historic high, but then fell 5.6% from the previous trading day as profit-taking orders appeared. In addition to NVIDIA, the overall semiconductor stocks, which have been on a strong trend recently, fell, causing the Philadelphia Semiconductor Index to plummet over 4%.
Cho Jun Ki, an analyst at SK Securities, said, “Many people do not doubt the promise of generative AI, but there is a price burden, and the desire for profit realization is increasing.”
The February employment report showed mixed data, with the unemployment rate rising but the number of non-agricultural jobs exceeding market expectations.
Kim Seok Hwan, an analyst at Mirae Asset Securities, explained, “While the unemployment rate rose from 3.7% the previous month to 3.9%, the number of non-agricultural jobs was 275,000, exceeding the market estimate of 200,000.”
Among the top 10 market capitalization stocks in the KOSPI, Kia (000270) rose 1.79%, and LG Energy Solution (373220) rose 0.25%. SK Hynix (000660) fell -3.03%, Samsung Electronics Preferred (005935) fell -0.95%, Samsung Electronics (005930) fell -0.68%, Samsung Biologics (207940) fell -0.48%, POSCO Holdings (005490) fell -0.45%, Samsung C&T (028260) fell -0.42%, Hyundai Motor (005380) fell -0.4%, and Celltrion (068270) fell -0.17%.
“In the early part of this week, the domestic stock market is expected to see volatility mainly on AI-related stocks due to the aftermath of the sharp drop in NVIDIA’s U.S. stock price,” Han Ji Young, an analyst at Kiwoom Securities, explained. “It is a time when there are many events inside and outside the stock market, so it is appropriate to respond with divided purchases when price volatility expands rather than betting on the index or existing leading sectors.”
At the same time, the KOSDAQ is pointing at 870.74, down 2.44 points (-0.28%) from the previous trading day.
In the KOSDAQ market, institutions and foreigners are pulling down the index. Institutions net sold KRW 18.5 billion ($15.6 million), and foreigners net sold KRW 68.8 billion ($58 million). On the other hand, individuals alone were net buyers of KRW 93.9 billion ($79 million).
Among the top 10 market capitalization stocks in the KOSDAQ, EnChem (348370) rose 13.39%, Shinseong Delta Tech (065350) rose 3.43%, and Rainbow Robotics (277810) rose 0.06%. Leeno Industrial (058470) fell -6.5%, Alteogen (96170) fell -5.08%, HPSP (403870) fell -4.2%, HLB (028300) fell -1.02%, Eco Pro BM (247540) fell -0.4%, Ecopro (086520) fell -0.17%, and Celltrion Pharm (068760) fell -0.09%.
The USD-KRW exchange rate in the Seoul foreign exchange market started at KRW 1317.0, down KRW 2.8 from the previous trading day.
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