00:02You're listening to AI Prism from Seoul Economic Daily.
00:06The KOSPI plunged 7.57% to 5,554,
00:12and circuit breakers fired on both the KOSPI and the COSDAC.
00:16The KOSPI has now fallen seven straight sessions,
00:19losing 20.7% from its October 2nd close.
00:23Gartner warns $3.5 trillion of AI infrastructure spending
00:27is at risk of impairment by 2030.
00:30And the National Pension Service,
00:32usually the market's fire brigade,
00:34has been a net seller this month.
00:36It's Friday, October 16th.
00:38Here's what today's story could mean for the Korean market.
00:41Hotter U.S. inflation, doubts about AI profits,
00:44and credit worries at debt-funded AI companies
00:47hit at the same time.
00:49Meanwhile, the buybacks in retail buying
00:51that cushioned earlier sell-offs are largely gone.
00:54And brokers are comparing this slide with July's crash,
00:57when the KOSPI fell 32.64% in a month.
01:01Here's what the numbers show.
01:03The KOSPI fell 454.59 points to 5,554.22.
01:10And the COSDAC fell 7.65% to 760.82 comma,
01:17with 410.9 trillion one of market value erased in a day.
01:22Samsung Electronics fell 9.48% to 210,001,
01:28and SK Hynix 11.06% to 1,262,001,
01:34their lowest levels since April 24th,
01:38while foreigners sold 3.63 trillion one,
01:41extending net selling to 18.07 trillion one
01:45over eight sessions.
01:47Gartner estimates $3.5 trillion of AI infrastructure,
01:52spending faces impairment risk by 2030,
01:55and says more than 80% of neocloud providers
01:58could stop operating.
02:00As CoreWeave fell 15.5%,
02:03Anthropics' third-quarter revenue rose 45%
02:07from the prior quarter to $16.8 billion.
02:11Slower than earlier in the year,
02:13and the beige books at higher oil costs
02:16are passing through supply chains.
02:18Brokers note the KOSPI sits 5.5% to 6%
02:22below its 200-day average,
02:25and 91 of 124 pass breaks since 1995
02:29recovered within two weeks.
02:31Pension funds sold in at 183.2 billion one
02:36of KOSPI and KOSDAX stocks since October 6th,
02:40with the National Pension Service's
02:42domestic equity weight having exceeded its limit
02:44at 29.1% in June.
02:47So what does this mean for investors
02:49watching the board today?
02:51Earlier, we said the National Pension Service
02:53has been a net seller this month.
02:56Here's what that actually means for you.
02:58Its domestic equity weight is near its limit,
03:01so analysts estimate it would only gain room
03:03to buy actively if the KOSPI fell
03:05to around $5,100 to $5,200.
03:09Brokers say this sell-off lacks buyers,
03:12since the buybacks have ended
03:13and retail demand is weaker than in July.
03:16So they see no clear rebound trigger.
03:19This is market context, not investment advice.
03:23What to watch
03:24The next two weeks,
03:26which brokers call the watershed for a death cross
03:29between the 50-day and 200-day averages,
03:32the October 27th to 28 FOMC meeting,
03:35after the market priced about a 27% chance of a hike,
03:39and whether financial authorities
03:41launched their contingency plan,
03:43which the financial regulators chief said
03:45they would implement quickly if needed.
03:47That's today's AI prism, stock investors.
03:51This episode was produced with AI assistants
03:54based on Seoul Economic Daily reporting
03:57and reviewed by a human editor.
04:01AI prism is a Juan Ifra award-winning series.
04:04We'll be back tomorrow.
04:06You've been listening to AI prism
04:07from Seoul Economic Daily.
04:11We'll be back tomorrow.
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