Key facts
- South Korea's Kospi index surged 4.6% on Friday, recovering from earlier steep losses.
- The benchmark index finished the week down 0.5%, following a 3.7% decline the prior week.
- The market's volatility is attributed to its heavy exposure to the global AI trade and semiconductor stocks.
- Samsung Electronics and SK Hynix, key semiconductor players, saw significant gains on Friday.
- KB Securities noted that much of the valuation adjustment in semiconductor stocks has already occurred.
South Korea's benchmark Kospi index concluded a turbulent trading week with a notable rebound on Friday, driven by renewed investor interest in AI-related semiconductor stocks. The index surged over 8% during the session before paring gains to close up 4.6%. This recovery followed a significant selloff earlier in the week, which saw the Kospi plunge over 8% on Monday, mirroring a downturn in US tech stocks and highlighting the market's sensitivity to AI sector fluctuations.
Despite Friday's gains, the Kospi finished the week down 0.5%, extending its decline from the previous week. The South Korean market's pronounced volatility is linked to its substantial exposure to the global AI trade and its concentration in semiconductor manufacturing. Analysts at KB Securities suggested that much of the recent valuation adjustment in semiconductor stocks has already occurred, indicating a potential easing of overheating.
Key industry players like Samsung Electronics and SK Hynix experienced significant gains on Friday, with Samsung Electronics surging over 13% intraday before closing 7.9% higher, and SK Hynix gaining as much as 9.6% before ending the session up 2.3%.