KOSPI falls in the 3% range on around 980 billion won in foreign net selling, slips below 5,500 [FN Morning Market Update]

[Financial News] The KOSPI is down more than 3% amid foreign investors’ net selling of around 980 billion won, falling below 5,500. Concerns that data center regulations will be tightened following the US midterm elections appear to be weighing on AI-related stocks, including semiconductor shares. The KOSDAQ has also fallen in the 3% range, slipping below 700.
According to the Korea Exchange (KRX), as of 10:03 a.m. on the 5th, the KOSPI was trading at 5,492.14, down 191.66 points (3.37%) from the previous trading day. The index opened at 5,580.09, down 103.71 points (1.82%), and fell as low as 5,461.64 during the session, with its decline at one point reaching 3.91%.
On the securities market, foreign investors were net sellers of 988.5 billion won. Individual and institutional investors were net buyers of 751.3 billion won and 258.8 billion won, respectively.
By sector, pharmaceuticals (up 3.77%), food, beverages and tobacco (up 3.61%), and electricity and gas (up 3.04%) were among the gainers. Medical and precision instruments (down 7.35%), electrical and electronics (down 6.10%), and machinery and equipment (down 3.18%) were among the decliners.
Among the top companies by market capitalization, Celltrion (up 6.75%), KB Financial Group (up 4.62%), and Hyundai Motor Company (up 4.41%) were among the gainers. Samsung Electro-Mechanics (down 10.04%), SK Square (down 6.45%), and Samsung Life Insurance (down 3.85%) were among the decliners.
Large-cap semiconductor stocks were also falling in tandem. Samsung Electronics was trading at 206,750 won, down 11,250 won (5.16%) from the previous trading day. SK hynix was at 1,296,000 won, down 100,000 won (7.16%).
As of 10:03 a.m., the KOSDAQ was trading at 692.59, down 22.36 points (3.13%) from the previous trading day. The index opened at 713.49 and fell as low as 690.89 during the session. Individual and institutional investors were net buyers of 125.1 billion won and 16.6 billion won, respectively, while foreign investors were net sellers of 144.1 billion won.
US stocks rose overnight on easing political uncertainty and expectations of policy changes following the midterm elections. The Dow Jones Industrial Average (DJIA) gained 3.03%, the S&P 500 rose 1.58%, and the NASDAQ Composite added 1.44%. In contrast, the PHLX Semiconductor Sector (SOX) fell 3.13% as Micron (down 7.00%) and Nvidia (down 3.17%) declined amid concerns over data center regulations.
The possibility of delays in new data center construction is weighing on suppliers of AI infrastructure, including semiconductor and power equipment makers. However, some forecasts suggest the impact on investments already underway could be limited.
Han Ji-young, an analyst at KIWOOM Securities Co., Ltd., forecast that “given that there are unlikely to be major disruptions to the schedules of data center investments already underway, the impact on existing supply contracts and any deterioration in the earnings outlook for AI infrastructure stocks will be limited.”

[email protected] Lee Jeong-hwa Reporter