[Closing Market] KOSPI Plunges 3.6%, Sliding to 5,640 Amid AI, U.S. Election Fears
On Nov. 3, the domestic stock market closed with a massive plunge, taking a shock from the aftermath of uncertainties surrounding the United States midterm elections and the precipitous drop in artificial intelligence (AI)-related big tech stock prices in the U.S. market. Failing to sustain the shor
On November 3, South Korea's KOSPI stock market experienced a significant 3.6% decline, closing at 5,640.79 following fears over the U.S. midterm elections and a sharp drop in AI-related large tech stocks in the U.S. market. Despite a brief attempt at a short-term rebound, both the KOSPI and KOSDAQ indices plunged in trading volumes of 3% to 8% due to simultaneous selling by foreigners and institutions.
The KOSPI index, starting at 5,715.19 and down 2.46% from the previous session, closed at 5,648.79, a 3.59% drop. Its KOSDAQ counterpart fell to 704.39, a 4.08% decrease, hitting a low of 5,615.80. The won-dollar exchange rate remained stable around 1,340 won, but a strong dollar and waning investor confidence fueled the downward trend.
Foreign and institutional investors netted out 2 trillion won, while retail investors purchased 1.6644 trillion won. The selling pressure was particularly strong in the KOSPI market, with foreign investors selling 1.5299 trillion won and institutions 514.7 billion won. In the KOSDAQ market, these investors accounted for 234.6 billion won and 74.9 billion won, respectively.
Top KOSPI and KOSDAQ stocks, including Samsung Electronics and SK hynix, saw heavy selling, with the former falling by 4.15% to 219,500 won and the latter by 5.03% to 1,398,000 won. The latter's foreign net selling volume was nearly three times that of Samsung Electronics. Other major stocks, like Samsung Electro-Mechanics, LG Energy Solution, and Hyundai Motor, also declined.
Meanwhile, the won-dollar exchange rate closed at 1,341 won, a 2.8 won drop from the previous day, reflecting a strong dollar trend and investor preference for safe assets. Experts suggested the volatility could continue until concerns over AI-related earnings and U.S. political and economic factors were addressed.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
