KOSPI Slides 3.26% as Chipmakers Face Rate Hike Fears
KOSPI fell to 6,684.37 as foreign and institutional investors net sold 4.46 trillion won, driven by FOMC rate hike concerns and a sharp drop in AI investment sentiment.
The KOSPI index closed at 6,684.37 on September 14, marking a 3.26% decline of 225.54 points. This drop pushed the benchmark back into the 6,600 range after selling pressure intensified immediately following the open. Although the index briefly recovered to the mid-6,700s, downside momentum reasserted itself in the afternoon session, erasing any early gains.
The selloff was driven by coordinated actions from major investors. Foreign entities recorded a net sell of 3.287 trillion won, while institutional investors sold a net 1.172 trillion won. Retail investors acted as a counterweight, buying a net 2.972 trillion won. This divergence highlights the institutional retreat from Korean equities amid broader macroeconomic uncertainty.
Monetary Policy Fears Drive Selloff
Caution regarding the Federal Open Market Committee meeting weighed heavily on investor sentiment. U.S. core consumer prices for August rose 0.3% month-over-month, exceeding the 0.2% market forecast. This data point revived concerns about further rate increases, creating a high-interest-rate environment that dampened risk appetite in South Korea.
Geopolitical uncertainty in the Middle East contributed to sustained high oil prices, compounding the monetary pressure. While U.S. stocks had risen earlier in the week on falling oil prices, the Korean market remained defensive. The combination of potential tighter monetary policy and energy cost concerns limited the index's ability to recover from the morning slide.
Chipmakers Lead Broad Market Decline
Semiconductor stocks suffered the steepest losses as sentiment toward artificial intelligence investments weakened. Reports of major U.S. tech companies slowing AI development pace triggered concentrated selling in large-cap chipmakers. Samsung Electronics fell 4.05% to a lower close, while SK Hynix slumped 6.35%.
The decline extended across the broader technology sector. Samsung Electronics preferred shares dropped 5.12%, and SK Square fell 8.17%. Samsung Electro-Mechanics also posted a steep loss of 4.50%. These movements reflect a direct reaction to doubts about the growth trajectory of the AI industry and its impact on component demand.
KOSDAQ Falls Amid Retail Buying
The KOSDAQ index closed at 806.79, down 1.69% or 13.85 points. The small-cap index retreated to the low-800s during the session before recouping part of the loss, though it failed to turn positive. Retail investors bought a net 109 billion won, while foreign and institutional investors sold a net 93 billion won and 30 billion won, respectively.
Notable declines in large-cap KOSDAQ stocks included Ecopro BM, which dropped 5.88%, and Ecopro, which fell 3.44%. Alteogen declined 2.99%, while Rainbow Robotics slipped 3.21%. The Korea Exchange also launched an after-market session on September 14, allowing real-time trading after the regular close, a structural change in market operations.
