The KOSPI gave back all of its gains from the previous two days and slipped back to the 5,550 level. Experts say the steep decline was excessive, as concerns about the artificial intelligence (AI) industry grew amid a lack of clear buying support. According to the Korea Exchange, the KOSPI closed at 5,552.74 on the 20th, down 215.27 points (3.73%) from the previous trading day. The index opened at 5,733.57, down 34.44 points (0.60%) from the previous close, and fell as low as 5,493.24 during the session, but individual investors’ bargain hunting helped pare some of the losses. Institutions and foreign investors dragged down the index with net sales of 998.4 billion won and 542.5 billion won, respectively. Individual investors and other corporations (with the latter’s buying centered on treasury-share purchases) were net buyers of 901.9 billion won and 635.7 billion won, respectively, but could not prevent the sharp decline. AI-related large-cap stocks saw particularly steep losses. The four companies with the largest market capitalizations—Samsung Electronics (-2.98%), SK hynix (-4.23%), SK Square (-5.00%) and Samsung Electro-Mechanics (-1.28%)—all ended lower. SK hynix in particular fell below 1.2 million won during the session. Other top market-capitalization stocks, including LG Energy Solution (-4.17%), Samsung Biologics (-2.52%), Hyundai Motor (-4.91%) and KB Financial Group (-1.11%), also all weakened. Market watchers attributed the day’s decline to a “lack of buying support.” Their reasoning is that, while concerns have emerged about growth in the AI industry, underlying demand for AI and memory remains solid. However, they noted that investor sentiment has recently deteriorated following a correction in the domestic stock market, leaving it more sensitive to bad news. An industry source who requested anonymity said, “The market should have rebounded today, but the fact that it fell suggests we should see this as a supply-and-demand issue rather than just bad news. I think the investors who bought stocks early when the AI trade began in 2023 are rebalancing their portfolios ahead of year-end.” The source added, “The Korean stock market has risen so much since the start of the year that selling demand from investors still looking to take profits remains quite strong.” With supply-and-demand conditions unfavorable, analysts expect it will be difficult for the time being to gauge the market’s low or predict a rebound. Foreign investors returning immediately after the U.S. midterm elections is cited as a possible short-term positive, but analysts say a fundamental shift back to an uptrend will be difficult. The source said, “There is currently a serious lack of stabilizing forces to support the market, such as the National Pension Service and treasury-share buybacks. We need a strong catalyst to absorb all the shares held by investors who bought at high prices and push the index higher.” The KOSDAQ closed at 781.97 on the day, down 26.92 points (3.33%) from the previous trading day. It opened at 805.37, down 3.52 points (0.44%), and fell below the 800 level early in the session. [email protected] Lim Sang-hyeok Reporter