Korea’s most important inventory index recorded its biggest-ever weekly sell-off by international buyers within the first week of November as profit-taking and considerations over a synthetic intelligence (AI) inventory bubble spurred a market retreat, the Korea Trade stated Sunday.
From Monday to Friday, international buyers dumped a internet 7.26 trillion received ($4.98 billion) price of shares on the benchmark Korea Composite Inventory Value Index (KOSPI), the bourse operator stated.
The quantity marked the most important weekly sell-off by international buyers in KOSPI historical past, surpassing the earlier file of seven.05 trillion received within the second week of August 2021.
The KOSPI skilled sharp volatility final week, climbing to a file excessive above 4,200 on Monday earlier than plunging almost 3 p.c Wednesday. After a short rebound Thursday, the index shed 1.81 p.c Friday, closing under the 4,000 mark.
The benchmark had been the fastest-rising main inventory index amongst Group of 20 nations as of Oct. 27, buoyed by sturdy international shopping for of semiconductors and different blue chip shares, in accordance with knowledge compiled by Yonhap Infomax, the monetary arm of Yonhap Information Company.
However the rally fueled profit-taking amongst international buyers, particularly after Wall Road slumped final week amid revived fears of an AI bubble, analysts stated.
Samsung Electronics, the world’s largest reminiscence chip maker, and its rival SK hynix Inc. accounted for greater than 70 p.c of international sell-offs final week.
Foreigners unloaded 1.5 trillion received price of Samsung shares and three.7 trillion received in SK shares, knowledge confirmed.
“With the U.S. federal authorities shutdown marking the longest in historical past, uncertainty over its financial impression has deepened,” stated Chung Hae-chang, an analyst at Daishin Securities. “Given the shortage of upward momentum and investor optimism, the market is more likely to stay in a consolidation section in the intervening time.”
Lee Sung-hoon, an analyst at Kiwoom Securities, famous that the current weak point of the Korean received may even sap international buyers’ urge for food, saying that international inflows are unlikely to rebound quickly.
The native forex fell under the psychologically essential 1,450 received threshold Friday, dipping to its lowest stage in almost seven months.
