KOSPI slides below its long trend line as chip stocks take the hit
A Broadcom comment and AI spending doubts hit Samsung and SK Hynix.
What happened
South Korea's KOSPI extended its losses for the week to 7.4% and fell below its 200-day moving average for the first time since late July. SK Hynix closed more than 10% lower. The Financial Times says declines for Samsung and SK Hynix dragged the index sharply lower as investors fret over the scale of AI investment. Comments by Broadcom's CEO at a conference in Singapore have been cited as a reason for microchip stocks' slumps on both Monday and Tuesday.
Sources: Cointelegraph, MarketWatch, Financial Times. Details
Why it matters
KOSPI is heavily tied to memory chips, so a drop in two stocks moves the whole index. Foreign investors sold around 173 trillion won ($129 billion) of SK Hynix and Samsung shares since the start of 2026, most of the year-to-date KOSPI sales. Even after this week, the index is up +51.49% this year, and it is down -6.64% so far in October.
What history shows
October has been a soft month for KOSPI: an average of -0.43% with 45% of Octobers up across 29 years since 1997.
The index is still -29.96% from its 52-week high.
Seasonal backdrop
November has tended to be kinder, with an average of +2.91% and 59% of Novembers higher. That is a historical pattern and it has no clear consistency.
Scenarios
Possible paths and the signs that would point to each. No probabilities. Testable ones are graded on the scorecard.
Chip worries fade
The AI spending debate cools and memory stocks stabilise, letting KOSPI recover its trend line.
- KOSPI closes back above its 200-day moving average
- Foreign selling of SK Hynix and Samsung slows
AI doubts spread
Concern about AI investment spreads from Korea to US chip names and drags global equities.
- Further weakness in microchip stocks
- Nasdaq Composite follows Asian chips lower
What to watch
- ASML third-quarter earnings on Wednesday
- Further comments from chip company executives on AI demand
Sources and method (4)
- South Korea's KOSPI extended its losses for the week to 7.4% and fell below its 200-day moving average for the first time since late July, with SK Hynix closing more than 10% lower. Cointelegraph, Oct 13
- Foreign investors sold around 173 trillion won ($129 billion) of SK Hynix and Samsung shares since the start of 2026, most of the year-to-date KOSPI sales. Cointelegraph, Oct 13
- Comments by Broadcom's CEO at a conference in Singapore have been cited as a reason for microchip stocks' slumps on both Monday and Tuesday. MarketWatch, Oct 13
- Declines for Samsung and SK Hynix dragged Kospi sharply lower as investors fret over the scale of AI investment. Financial Times, Oct 13