The KOSPI index held above 8000 on July 6 as individual investors bought 2.6 trillion won in stocks. Foreign and institutional investors sold a combined 2.7 trillion won, but retail buying defended the key psychological level. The index closed at 8051.33, down 0.46%. The decline followed news of delays in NVIDIA's Kaiba NVL 144 rack component, triggering a selloff in semiconductor stocks including Samsung Electro-Mechanics, which fell 8%. Attention now turns to Samsung Electronics' second-quarter earnings announcement on July 7 and SK Hynix's ADR listing on NASDAQ scheduled for July 10.
KOSPI Closes at 8051.33 After Volatile Session
The KOSPI index fell 37.01 points or 0.46% to close at 8051.33 on July 6, according to Korea Exchange data. The index opened 98.48 points (1.22%) higher at 8186.82 but reversed course around 10:46 AM and dropped more than 3% intraday before recovering. Jung Da-woon, a researcher at LS Securities, attributed the volatility to "heightened caution as market liquidity became extremely concentrated in semiconductors" and cited uncertainty from NVIDIA's Kaiba NVL 144 rack delay news and the rise of progressive Democrats with negative views on AI ahead of US midterm elections.
Individual Investors Purchase 2.6 Trillion Won Net
Individual investors purchased 2.6461 trillion won in stocks on July 6, while foreign investors sold 1.3338 trillion won and institutional investors sold 1.4314 trillion won, according to Korea Exchange data. The net buying by retail investors prevented the KOSPI from breaking below the 8000 level despite heavy selling pressure from foreign and institutional participants.
Semiconductor Stocks Decline on NVIDIA Component Delay News
Samsung Electro-Mechanics plunged 8% on July 6 as news spread that NVIDIA's Kaiba rack faced technical application delays due to PCB (printed circuit board) process difficulties, according to Lee Kyung-min, FICC division head at Daishin Securities. Other PCB-related stocks also fell sharply: Isupetasys dropped 7%, Korea Circuit declined more than 6%, Daeduck Electronics fell 4%, and LG Innotek dropped more than 1%. SK Hynix fell more than 3% while Samsung Electronics rose more than 2%. Among major cap stocks, Hyundai Motor and Kia gained 2% and more than 5% respectively. By sector, medical and precision equipment fell more than 5% while securities rose more than 3%.
The KOSDAQ index fell 21.34 points or 2.46% to close at 847.07. Foreign investors sold 40.9 billion won and institutions sold 227 billion won, while individuals bought 269.4 billion won. Among top market cap stocks, ABL Bio and PSK plummeted more than 6%, Jusung Engineering fell more than 5%, and Lino Industrial declined more than 4%. By sector, machinery and equipment dropped more than 4% and electrical and electronics fell more than 3%.
Samsung Electronics Announces Q2 Earnings July 7, SK Hynix Lists ADR July 10
Samsung Electronics will announce its second-quarter preliminary earnings on July 7. The securities industry consensus for Samsung Electronics' Q2 operating profit is 85 trillion won, far exceeding the company's first-quarter record of 57 trillion won. Jung Da-woon of LS Securities stated that "Samsung Electronics' Q2 earnings are likely to be strong, but issues related to earnings stability such as LTA (long-term supply agreements) and AI demand are more important than the results themselves."
SK Hynix will list its ADR on NASDAQ on July 10. Han Ji-young, a researcher at Kiwoom Securities, said "the success of the listing is key" because "it could serve as an opportunity to narrow the PER (price-to-earnings ratio) gap with Micron, which trades at a higher valuation premium (6.7x) in the US market compared to Samsung Electronics (5.5x) and SK Hynix (6.2x)."
Beyond semiconductor sector events, researchers Lim Jung-eun and Tae Yoon-sun at KB Securities noted expectations for improved market liquidity conditions from "the establishment of a future response fund, official support for three mega projects, and the pursuit of legislation to defer National Pension rebalancing."
The won/dollar exchange rate closed at 1530.3 won (as of 3:30 PM), up 4.7 won from the previous trading day's close, according to the Seoul foreign exchange market.
FAQ
What caused the KOSPI to decline on July 6?
The KOSPI fell 0.46% to 8051.33 on July 6 due to news of delays in NVIDIA's Kaiba NVL 144 rack component, which triggered selling in semiconductor-related stocks. Samsung Electro-Mechanics dropped 8% and other PCB stocks declined sharply. Foreign and institutional investors sold a combined 2.7 trillion won.
When will Samsung Electronics announce its Q2 earnings?
Samsung Electronics will announce its second-quarter preliminary earnings on July 7. The securities industry consensus for Q2 operating profit is 85 trillion won, exceeding the company's first-quarter record of 57 trillion won. Analysts emphasize that earnings stability issues such as long-term supply agreements and AI demand trends are more important than the headline results.
Why is SK Hynix's NASDAQ ADR listing on July 10 significant?
SK Hynix will list its ADR on NASDAQ on July 10. According to Kiwoom Securities researcher Han Ji-young, the listing's success could narrow the valuation gap with Micron, which trades at a 6.7x PER premium in the US market compared to Samsung Electronics (5.5x) and SK Hynix (6.2x).
