Korean Stock Market Closing Briefing & AI Investment Ideas — October 30, 2026

Market Closing Status

• Kospi Index: The index plunged during trading on October 30, triggering a sell sidecar. This is the first such occurrence in 11 trading sessions, and the failure to defend the index weighed heavily on market sentiment.
• Market Characteristics:
  • Unlike the optimism seen in the early morning session, the pattern of sell-offs emerging in the afternoon and turning the index downward has been repeating. Notably, on October 29, despite positive news from SK Hynix, the index failed to hold the 6,000 level and closed at 5,937.
  • Although the US Federal Reserve (Fed) kept benchmark interest rates on hold, policy uncertainty persists as two members advocated for a rate hike. This is acting as downward pressure on global stock markets overall.
  • Despite expectations of "record-breaking earnings," doubts over AI profitability and a supply-demand vacuum are holding back the stock market. A lack of buying subjects has continued since Samsung Electronics and SK Hynix wrapped up their treasury stock buybacks.

1 sources

biz.chosun.com

[주식 매매 상위 종목 및 환율] 2026년 10월 28일자 - 조선비즈

Today's Market Feature Stocks & Key Issues

• Alphabet: After the market closed, the company reported an unexpected earnings miss, causing its shares to fall in after-hours trading. This is a factor that could negatively impact domestic tech stocks and related value chains.
• Securities Sector: With major securities firms seeing their Q3 earnings surge this year, the debate has shifted to whether they should reinvest these profits or focus on shareholder returns. Financial authorities' calls for shareholder returns and upcoming earnings announcements are expected to impact stock prices.
• AI-Related Stocks: Recommendations for major global AI semiconductor stocks like NVIDIA, Micron, and AMD remain intact even amid concerns over AI profitability. However, volatility may increase ahead of Q3 earnings announcements.

1 sources

businesskorea.co.kr

businesskorea.co.kr

AI-Driven Investment Ideas

• AI Profitability Verification is Key: Whether US Big Tech's AI investments pay off will be a key variable determining the direction of the stock market. If practical revenue contributions are not confirmed relative to massive CAPEX (capital expenditures), valuation adjustments for related stocks could occur.
• Supply and Demand Post-Semiconductor Buybacks: With Samsung Electronics and SK Hynix concluding their 55 trillion won treasury stock buyback program, a supply-demand vacuum is feared in the semiconductor sector. Confirming earnings sustainability and announcing additional shareholder return policies could serve as short-term rebound triggers.
• Importance of Diversified Investment Strategies: For the 2027 investment strategy, diversification and cash flow management are being emphasized over concentrating on a single semiconductor stock. Private bankers (PBs) at the top 5 commercial banks recommend a strategy that includes dollar assets alongside semiconductors and other diverse asset classes.

Investment Precautions & Macro Context

• Exchange Rates and Global Macro: The Fed's rate freeze and the presence of dissenting votes for a rate hike are sustaining upward pressure on the dollar and foreign exchange volatility. This directly impacts the inflows and outflows of foreign capital.
• Recovery of Foreign Supply and Demand: As of October 30, the recovery of foreign capital flows is cited as a crucial variable for the stock market. If foreign selling continues amid the global stock market slump and AI skepticism, downside risks for the domestic market could expand.
• IPO and Public Offering Market: It has been reported that 8 major domestic securities firms declined to participate in the IPO of global AI company Anthropic. This suggests that public offering subscriptions may face difficulties, acting as a factor that dampens sentiment in the new IPO sector.