Domestic Market Closing & AI Investment Insights — 2026-07-21
The domestic market is reeling from massive institutional selling, with AI profitability concerns and geopolitical tension in the Middle East weighing heavily on sentiment while investors look for signs of a rebound during this valuation reset.
Domestic Market Closing & AI Investment Insights — 2026-07-21
Market Closing Summary
- KOSPI: Adjusting below the 6,800 level (down from last week)
- KOSDAQ: 791.84 points (down 45.59 points, 5.44% from last week)
Key Highlights
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Heavy Institutional Selling: The domestic market ended in a crash as major market-cap leaders plummeted, with institutions offloading approximately 1 trillion won worth of shares.
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Broad Weakness: Both KOSPI and KOSDAQ saw widespread declines across large and small-cap stocks, deepening the correction.
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Liquidity Constraints: Despite joint buying from retail investors and foreigners, KOSPI trading volume has shrunk, reflecting decreased market liquidity. Domestic supply and demand have worsened due to fears over AI profitability and geopolitical uncertainty in the Middle East.
Today’s Market Movers & Major Issues
Samsung Electronics & SK Hynix (AI Semiconductor Stocks)
These remain the key indicators global investors are watching in the Korean market. With the AI investment craze, the influence of Samsung Electronics and SK Hynix has grown. They are currently being eyed as potential bargain buys amidst the semiconductor-focused correction.
Hankook Tire & Technology (Auto Parts)
Despite the market crash, brokerage firms have set a target price of 120,000 won for this stock. It is being praised for securing orders from Tesla, BYD, and Volkswagen based on its strong position in the EV market.
Data-Driven AI Investment Ideas
1. Dividend ETFs & Mid-Dividend Stocks
Opportunities are emerging for ETFs and stocks with attractive dividend yields as the market undergoes a semiconductor-led correction. Valuation adjustments have made dividend yields relatively more appealing for stocks seeing a spike in volume.
2. Selective Bargain Hunting in Semiconductors
While the semiconductor sector is correcting due to AI profitability concerns, patterns of bargain buying from the US market are being observed. Given that global demand for AI chips remains intact, valuation-based buying is seen as a strategic opportunity.
3. Performance-Based Stock Selection
As the market navigates this AI valuation reset, institutional interest is expected to shift toward stocks with strong fundamentals and reliable dividends.
Investment Risks & Macro Context
US-Iran Geopolitical Uncertainty
Ongoing military tensions between the US and Iran are putting upward pressure on oil prices, fueling fears of a global economic slowdown.
Retail Investor Capitulation
Retail investors are increasingly liquidating positions due to fatigue from market volatility, and a drop in deposit balances is further restricting liquidity.
Institutional Portfolio Rebalancing
The massive institutional selling is being interpreted as part of a portfolio adjustment following concerns over AI sector profitability, acting as a major driver of short-term volatility.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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