South Korea’s benchmark KOSPI ended a turbulent trading week lower, closing at 6,690.62 on Friday after sharp swings driven by semiconductor stocks, geopolitical tensions and shifting sentiment over artificial intelligence-related investments.
The benchmark finished the week down about 1.91%, with investors navigating steep declines and strong rebounds as heavyweight technology stocks dictated market direction.
The week opened with heavy selling pressure on Monday, when the KOSPI plunged 4.46% to 6,516.27 in a broad-based market rout. The technology-heavy KOSDAQ also fell 5.33% to 749.64 as investors reacted to geopolitical uncertainties and concerns over the interest rate outlook.
Sentiment improved sharply on Tuesday as foreign and institutional investors returned to the market, lifting the KOSPI 231.68 points, or 3.56%, to 6,747.95. Semiconductor giants led the rebound, with Samsung Electronics surging 6.15% and SK Hynix climbing 4.08%, helping the benchmark reclaim the 6,700 level.
The recovery continued on Wednesday as the KOSPI added 49.75 points, or 0.74%, to close at 6,797.70. Foreign buying continued to support large-cap technology and export-oriented stocks despite selling by domestic investors.
Optimism strengthened further on Thursday, sending the benchmark up 299.19 points, or 4.40%, to 7,096.89 as investors welcomed continued global investment in artificial intelligence infrastructure. The rally also lifted the KOSDAQ by 5.22%.
However, Friday’s session erased much of the week’s gains as the KOSPI slumped 406.27 points, or 5.72%, to 6,690.62. The selloff followed renewed concerns over escalating tensions in the Middle East and weakness in US technology stocks amid worries over the sustainability of AI-related capital expenditure.
Samsung Electronics and SK Hynix both fell around 7% to 8%, dragging the broader market sharply lower, while programme trading was briefly halted after a market “sidecar” mechanism was triggered.
The week’s trading underscored the KOSPI’s growing sensitivity to semiconductor heavyweights and global technology sentiment, with movements in Samsung Electronics and SK Hynix accounting for much of the benchmark’s volatility. External factors, including geopolitical developments and oil price concerns, also added to investor caution throughout the week.
