▲ An employee works at the dealing room of Hana Bank in Jung-gu, Seoul, on October 30, as the KOSPI drops more than 3% following a sharp decline in U.S. tech stocks. (Photo: Yonhap News)
Semiconductor stocks suffered sharp declines following a rout in tech shares, including Alphabet, on the U.S. stock market.
According to the Korea Exchange, Samsung Electronics closed the regular session down 3.02% from the previous trading day at 225,000 won.
Samsung Electronics, which remained weak throughout the session, saw its shares plunge as much as 6.68% to 216,500 won at one point.
Preferred shares of Samsung Electronics (Samsung Electronics Preferred) finished 5.33% lower at 174,100 won.
SK Hynix, which had shown a relatively resilient trend compared to Samsung Electronics the previous day, recorded an even steeper drop.
SK Hynix closed down 7.08% from the previous session at 1,418,000 won.
During the session, its share price plummeted up to 9.50% to sink as low as 1,381,000 won.
Related stocks such as SK Square (-5.88%), Samsung Life Insurance (-2.70%), and Samsung C&T (-3.55%) also declined.
Foreign investors net sold 429 billion won worth of SK Hynix, 213.4 billion won of Samsung Electronics, and 132.7 billion won of Samsung Electronics Preferred.
Amid the decline in large-cap semiconductor stocks, materials, parts, and equipment (supplies, parts, and equipment) stocks on the KOSDAQ market were also weak.
Jusung Engineering (-6.78%), EO Technics (-6.39%), Simmtech (-8.02%), and Wonik IPS (-7.72%) registered steep losses.
As major semiconductor stocks with heavy market capitalization weightings declined in both the KOSPI and KOSDAQ markets, the indices trended downward.
On this day, the KOSPI and KOSDAQ indices fell 3.48% and 3.83%, respectively, compared to the previous trading day.
This appears to be the fallout from overnight Wall Street trading, where concerns over artificial intelligence investments resurfaced, triggering a sharp drop in tech shares.
In particular, Alphabet, Google's parent company, reported sales below market expectations and a steep increase in AI-related cash burn, which reignited these concerns.
Consequently, Alphabet's stock plunged 12.64%, while Micron Technology fell 4.98%, AMD dropped 2.08%, and SK Hynix American Depositary Receipts (ADRs) retreated 1.58%.
In the wake of this, the tech-heavy Nasdaq Composite Index dropped 1.38% and the Philadelphia Semiconductor Index declined 1.42%.
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.