KOSPI Plummets to 6,800, Doubts About AI Investment and Leverage Pressure
KOSPI has dropped over 25% from its peak, reaching 6,800. Analyst Labor Gil from Shinhan Investment Corp. noted that uncertainties regarding the sustainability of AI capital investments and mechanical selling from leveraged and inverse ETFs have amplified the decline.
KOSPI has dropped over 25% from its peak, reaching 6,800. This shock has been interpreted by market participants as a deterioration in investment sentiment.
Labor Gil, an analyst at Shinhan Investment Corp., pointed out in a report on the 14th that doubts about the sustainability of global AI capital investments (Capex) are at the core of the KOSPI's sharp decline. The report stated that the flow of AI investment itself increases uncertainty more than the individual performances of semiconductor companies.
The report mentioned that the burden of free cash flow (FCF) on major global tech companies is increasing. It noted that the fact that Meta has begun discussions about selling excess computing power has amplified concerns about overinvestment.
In the domestic market, mechanical selling of leveraged and inverse exchange-traded funds (ETFs) has been identified as a factor that has exacerbated the decline. The report noted that automatic selling of leveraged products has amplified market fluctuations.
The report summarized that AI capital investment and ETF flows should be viewed together rather than focusing solely on the performances of individual companies. It indicated that further details or figures should be confirmed through the report.
Sources: 연합인포맥스
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