The KOSPI index rebounded after four consecutive days of decline on the 9th, rising 45.12 points (0.62%) to close at 7291.91, driven by bargain hunting in semiconductor stocks and foreign investor inflows. The recovery occurred despite individual investors net selling 1.33 trillion won worth of shares, while foreign and institutional investors net purchased 146.1 billion won and 1.288 trillion won respectively. Market volatility stemmed from ongoing Middle East conflict uncertainties and concerns over reduced AI investment, though analysts maintain that KOSPI fundamentals remain solid and current valuations present buying opportunities.
KOSPI Index Closes at 7291.91 on the 9th
The KOSPI index opened higher on the 9th and rose more than 3% during intraday trading before paring gains and briefly turning negative. The index fluctuated around the 7200 level before closing in positive territory at 7291.91, up 45.12 points (0.62%) from the previous trading day.
Individual Investors Net Sell 1.33 Trillion Won
Individual investors net sold 1.3308 trillion won worth of shares on the 9th. Foreign investors net purchased 146.1 billion won, marking their second consecutive day of net buying. Institutional investors net bought 1.288 trillion won worth of shares.
SK Hynix Leads Semiconductor Sector Gains
Among large-cap stocks, SK Hynix rose 5.3% and SK Square gained 4.49%. The successful pricing of SK Hynix's ADR (American Depositary Receipt) public offering ahead of its US market listing on the 10th (local time) influenced the stock's performance. Samsung Electronics closed nearly flat. Samsung Life Insurance and Samsung C&T declined 5.78% and 4.18% respectively. Hyundai Motor and Kia fell 3.68% and 7.65% respectively.
By sector, telecommunications rose 3.6%, while electrical and electronics gained 2.21% and manufacturing increased 1.17%. Insurance declined 5.51%, and transportation equipment and parts along with entertainment and culture fell more than 4%.
Lee Kyung-min, head of FICC Research at Daishin Securities, stated: "The domestic stock market opened higher due to bargain hunting inflows into the semiconductor sector, but lacked direction and repeatedly fluctuated due to continued Middle East noise and supply and demand volatility. Accumulated negative factors surrounding the semiconductor sector and profit-taking pressure led individual investors to engage in large-scale net selling."
Analysts Cite Solid Fundamentals Despite Recent Decline
Middle East conflict uncertainties and AI investment reduction concerns pressured the KOSPI index recently. The index declined for three consecutive days from the 6th through the previous day due to these factors. Analysts assess these concerns as excessive.
Lee Eun-taek, researcher at KB Securities, stated: "Concerns about semiconductor peak-out (decline after peak) due to slowing profit growth rate have been raised, but a base effect is inevitable after profits surge. A more reliable indicator than profit growth rate is profit margin."
Securities Firms Recommend Value Buying Strategy
Analysts advise that the KOSPI index has declined excessively and approached bottom levels, presenting bargain buying opportunities. They analyze that while a trend reversal may require time, short-term rebounds can occur considering current price levels.
Han Ji-young, researcher at Kiwoom Securities, advised: "In the current range where the KOSPI index has fallen to the early 7000s, it is appropriate to prioritize split buying responses centered on oversold existing core sectors such as semiconductors, MLCC (multilayer ceramic capacitors), power equipment, and securities."
The KOSDAQ index also rose after four days. It closed at 794, up 9 points (1.15%) from the previous trading day. Foreigners and institutions net purchased 21.8 billion won and 307.2 billion won respectively, while individuals net sold 320.6 billion won. Among KOSDAQ large-cap stocks, Simpac (up 12.72%), Jusung Engineering (11.5%), and Phadu (10.97%) surged more than 10%. By sector, construction, machinery and equipment, and electrical and electronics rose more than 2%. Manufacturing, non-metals, and transportation equipment and parts also gained more than 1%.
The won/dollar exchange rate closed the weekly trading session at 1506.1 won, up 7.6 won from the previous closing price.
FAQ
Q: What caused the KOSPI stocks to rebound on the 9th after four days of decline?
A: The KOSPI index rebounded 45.12 points (0.62%) to 7291.91 on the 9th due to bargain hunting in semiconductor stocks and foreign investor net buying of 146.1 billion won for the second consecutive day, despite individual investors net selling 1.33 trillion won worth of shares.
Q: How did SK Hynix perform on the 9th and what influenced its stock price?
A: SK Hynix rose 5.3% on the 9th. The successful pricing of SK Hynix's ADR public offering ahead of its US market listing on the 10th (local time) influenced the stock's performance.
Q: What investment strategy do analysts recommend for the current KOSPI stocks market level?
A: Analysts recommend prioritizing split buying in oversold core sectors including semiconductors, MLCC, power equipment, and securities, as the KOSPI index has fallen to the early 7000s range and approached bottom levels, presenting bargain buying opportunities.
