The KOSPI index made a rapid rebound after five trading days. Although it faced three consecutive declines due to political uncertainty triggered by the state of emergency, a wave of buying followed. Additionally, expectations for economic stimulus from China contributed to the rebound in cyclical sectors such as chemicals and cosmetics.
On the 10th, the KOSPI index closed at 2417.84, up 57.26 points (2.43%) from the previous session. The index started at 2384.51, up 23.93 points (1.01%) from the previous session, and expanded its gains. At one point during the trading day, it rose to 2419.06.
Before the opening on this day, it was anticipated that the KOSPI would start down by over 2%. The day before, which was the first trading day after the impeachment motion against President Yoon Suk Yeol was scrapped, saw panic selling by individual investors, leading to a new 52-week low for the KOSPI. As a result, significant amounts of short-selling occurred again on this day, but it seems that the perception of excessive declines contributed to buying support, allowing the sell-off to be absorbed smoothly.
The influx of low-priced buying mainly by institutional investors led the rebound. Institutions, centered on financial investment and pension funds, net purchased 459.6 billion won. Individual investor selling continued, and foreigners opted to sell 149 billion won on this day; however, they could not surpass the institutional buying.
Lee Kyung-min, a Research Institute analyst at Daishin Securities, noted, 'While we faced the worst Monday as political uncertainty expanded the previous day, a wave of buying pressure came in.' He added, 'Although it is difficult to say that political uncertainty has been resolved, it is encouraging that the market has begun to recognize it as a low point for declines.'
The active response from financial authorities, including the push for market stabilization and interventions in the foreign exchange market, also influenced the rebound after five trading days. The won-dollar exchange rate, which had previously pressured the domestic market, fell. At the close of trading, the won-dollar exchange rate recorded a decrease of 0.7 won at 1427.10.
In the stock market of the KOSPI, the majority of large-cap stocks saw gains fueled by institutional buying of large-cap stocks. In particular, Hyundai Motor, Celltrion, and Kia rose more than 4% on this day. Among the top 10 market capitalization stocks, LG Energy Solution was the only stock that declined.
Cyclical sectors such as chemicals, cosmetics, construction, and steel also rebounded due to the effects of China's stimulus measures. This came after the Central Politburo meeting held by the Communist Party of China the previous day, which advocated for 'more proactive fiscal policy and moderately loose monetary policy' regarding next year's economic policies.
Amorepacific Corporation, which had been overlooked due to the domestic recession in China, saw its stock price rise by over 7% on this day. Cosmax, a major manufacturer and development producer for cosmetics in Korea, saw its stock price increase by more than 11%. Stocks of Hyundai Steel, Hyosung Chemical, and SeAH Steel Holdings also jumped over 10%.
The rise in the KOSDAQ index was even more pronounced. It rose by 34.58 points (5.52%) to close at 661.59 on this day. Individual investors net sold 413.8 billion won, but foreigners and institutions net purchased 292.5 billion won and 117.9 billion won, respectively, leading the rebound after five trading days.
In the KOSDAQ market, stocks with high market capitalization showed strong performance, particularly in pharmaceuticals and cosmetics. Cheap buying pressure flowed into pharmaceutical stocks, while expectations for China's economic stimulus were reflected in the cosmetics sector. The stock price of Alteogen, the leading bio stock in the KOSDAQ market, rose by over 11%.
Additionally, the stock prices of most of the top market capitalization stocks increased. Among the top 30 listed companies in the KOSDAQ market, 28 stocks were in the green. The cosmetics stock VT, known for its 'Lid Shot,' had its price soar by 24% on this day. IOTech and Park Systems experienced declines.
Meanwhile, theme stocks related to Lee Jae-myung, the leader of the Democratic Party of Korea, continued to perform well on this day. The automotive parts company Orient Precision soared to the price limit (29.97%) immediately after opening, marking its fifth consecutive day of hitting the upper limit. Eastako also recorded the upper limit for three consecutive trading days until this day.