[KRX deadline | October 30] KOSPI 5730 line retreat... Foreigners net sold KRW 1.6195 trillion

Semiconductors are weak due to plummeting US technology stocks and concerns about AI investment profitability... KOSPI fell 3.48%

KOSDAQ also plunged 3.83%... Security stocks and individual stocks selected are strong.

On the 30th, the domestic stock market, KOSPI and KOSDAQ both plummeted. After the earnings announcements of major U.S. technology companies, concerns about the profitability of artificial intelligence (AI) investment grew, and selling was focused on large-cap semiconductor stocks. In particular, as foreigners net sold more than 1.6 trillion won, the KOSPI was pushed to the 5,700 level, and the KOSDAQ also fell by more than 3%.

According to the Korea Exchange, KOSPI finished trading at 5730.74, down 206.92 points (3.48%) from the previous trading day. KOSDAQ closed at 724.38, down 28.85 points (3.83%). The won-dollar exchange rate ended weekly trading at 1334.3 won, down 2.5 won from the previous trading day.

KOSPI started lower the previous day due to the influence of major US companies' earnings announcements. As concerns about the profitability of AI investment grew, foreign selling expanded, especially in the electrical and electronics industries, falling for two consecutive trading days.

By industry, medical and precision equipment fell 7.1%, construction fell 6.2%, transportation equipment and parts fell 4.9%, and electricity and electronics fell 4.7%. Large-cap stocks fell 3.7%, mid-cap stocks fell 1.1%, and small-cap stocks fell 1.5%.

In terms of supply and demand, foreigners net sold 1.6195 trillion won, while institutions and individuals net bought 744.5 billion won and 621.1 billion won, respectively. Foreigners net sold 1.0995 trillion won in electricity and electronics, 229.5 billion won in finance, and 87.6 billion won in transportation equipment and parts.

KOSDAQ fell for two consecutive trading days as institutional selling continued, with weakness centered on the electrical/electronic and machinery/equipment industries. By industry, non-metals fell 6.3%, machinery and equipment fell 5.6%, and medical and precision equipment fell 5.4%. Foreigners and institutions net sold 27.6 billion won and 138 billion won, respectively, while individuals net bought 169.2 billion won.

Security stocks soar due to virtual asset security incident... New drug’s good news also highlighted

Domestic information security-related stocks showed a strong performance following the news that a large-scale security incident occurred at Binance, the world's largest virtual asset exchange. AhnLab (053800) rose 17.98%, Raon Secure (042510) rose 16.82%, and Genians (263860) rose 11.00%. As large-scale virtual asset security incidents highlighted the need to strengthen security in the financial and digital asset sectors, buying pressure flowed into related stocks.

Hanmi Pharmaceutical (128940) rose 6.82% on the news that it had signed a technology export contract for Fabry disease treatment with BioMarin of the United States. Expectations for ‘Epee’, an obesity treatment drug that has begun to be prescribed domestically, have also increased.

Daewon Pharmaceutical (003220) rose 12.73% on the news of the success of domestic phase 3 clinical trials of ‘Padoprazan’, a new drug for treating gastroesophageal reflux disease.

Individual stocks are strong due to improved performance and new listings

Raon Robotics (232680) soared 24.19% due to good performance in the third quarter. On a separate basis, sales increased by 104.7% to KRW 26.5 billion compared to the same period last year, and operating profit increased by 259.3% to KRW 3.9 billion.

Amore Pacific (090430) rose 3.78% in its third quarter operating profit, recording 115.2 billion won, a 25.4% increase over the same period last year.

Seoul Semiconductor (046890) rose 3.93% as expectations continued for the development of ‘WICOP3’, an ultra-small white LED technology that does not use rare earth elements and phosphors.

Intellibix (420610), which was newly listed on KOSDAQ on this day, soared 244.44% compared to the public offering price of 9,000 won. As an AI-based video analysis company, there was a lot of buying pressure due to expectations of growth in industrial safety and disaster response and intelligent security control businesses.

On the other hand, SK Hynix (000660) fell 7.08% as the stock price of Alphabet in the U.S. plummeted and concerns spread about the profitability of AI investment. Samsung Electronics (005930) also fell 3.02% due to a decline in investment sentiment across the semiconductor industry due to the weakness of US technology stocks.

Hyundai Motor Company (005380) recorded sales of 45.11 trillion won in the third quarter, down 3.4% from the same period last year, down 3.59%. The fact that the annual sales target was lowered due to production disruptions and decreased sales volume was a burden.

APR (278470) recorded third quarter sales of KRW 773.1 billion, up 100.3% from the same period last year, and operating profit of KRW 160.6 billion, up 68.9%, but fell 7.61% due to the evaluation that it did not meet market expectations.

Hanwha Aerospace (012450)'s operating profit in the third quarter fell 8.42%, falling 46.2% compared to the same period last year to 452 billion won, far below market expectations.

GS Engineering & Construction (006360) fell 11.56% as its third quarter performance decreased compared to the same period last year. Declining sales in the building and housing sectors and weakness in the overall construction industry acted as a burden.