The KOSPI index, which initially dipped due to Intel Corporation’s disappointing earnings report, rebounded on Monday, reclaiming the 5800 level. Institutional buying drove SK Hynix up by over 3%, while Samsung Electronics recovered most of its earlier losses.
As of 10:11 a.m. (KST), the KOSPI stood at 5809.06, up 78.32 points or 1.37% from the previous trading session.
The index opened more than 1% lower, briefly touching the 5660 level, before reversing course and entering positive territory. Around 10:00 a.m. (KST), it gained momentum and surpassed the 5800 mark.
Institutional investors bolstered the index’s recovery with net purchases of 464.4 billion KRW (about 346 million USD). Foreign and individual investors, however, were net sellers, offloading 195.4 billion KRW (about 147 million USD) and 327.5 billion KRW (about 244 million USD), respectively.
Large semiconductor stocks led the rebound. SK Hynix, after an initial 2.05% drop to 1,389,000 KRW (about 1,036 USD), surged 3.03%. Samsung Electronics, which had fallen 3.56% to 217,000 KRW (about 162 USD), trimmed its losses to a mere 0.11% decline.
Other top KOSPI stocks by market cap also saw gains, including SK Square up 2.23%, Hyundai Motor rising 2.13%, LG Energy Solution climbing 0.83%, Samsung Electro-Mechanics advancing 0.59%, and Samsung Electronics Preferred increasing 0.40%.
On the flip side, Samsung Biologics and KB Financial fell 2.49% and 1.54%, respectively.
On October 30, Intel Corporation’s stock plummeted 28.58% on Wall Street due to a gloomy earnings forecast, triggering a broader sell-off in semiconductor stocks. The Philadelphia Semiconductor Index also tumbled 7.20%.
However, the Korean market seems to be attracting bargain hunters following last week’s sharp decline. The weekend announcement of a 259.4% year-over-year surge in Korea’s October semiconductor exports has also helped ease concerns about the memory chip market.
Kiwoom Securities analyst Han Ji-young commented that last Friday’s KOSPI plunge appears excessive, creating an opportunity for bargain hunting. However, investors should brace for increased volatility this week due to major events unfolding in the U.S.
Foreign investors showed mixed signals, selling in the KOSPI cash market while net buying 2,818 contracts in the KOSPI 200 futures market.
Meanwhile, U.S. stock futures pointed higher, with Nasdaq 100 futures up 0.63% and S&P 500 futures gaining 0.34%.
The KOSDAQ also turned positive, rising 7.61 points or 1.05% to 731.99. After a lower start, it fluctuated before gaining upward momentum.
On the KOSDAQ, institutions and individuals were net buyers, purchasing 9.5 billion KRW (about 7 million USD) and 24.9 billion KRW (about 19 million USD) respectively. Foreign investors, however, were net sellers of 29.4 billion KRW (about 22 million USD).
All ten top KOSDAQ stocks by market cap are in the green. Semiconductor-related stocks are showing particular strength, with Simmtech up 3.96%, Jusung Engineering rising 3.94%, and Wonik IPS gaining 3.73%.
Other gainers include HLB up 3.25%, LEENO Industrial climbing 2.32%, EO Technics advancing 1.16%, EcoPro rising 1.11%, Alteogen up 0.71%, Rainbow Robotics edging up 0.14%, and EcoPro BM inching up 0.11%.
By sector, shipbuilding leads with a 7.70% gain, followed by air freight and logistics up 7.06%, electrical equipment rising 5.48%, and construction advancing 4.40%. In contrast, healthcare companies and services fell 5.75%, broadcasting and entertainment dropped 3.41%, and software declined 1.98%.
