The KOSPI and KOSDAQ indexes both jumped more than 4%, recouping a significant portion of last week's losses. In particular, foreign investors, who had flooded the market with record supply last week and pressured prices, turned to net buying and led the rebound.
However, compared with last week's record selling, the funds that came in today are likely short-term flows seeking a "technical rebound," so it seems necessary to see whether foreign buying shows continuity.
On the 9th, the KOSPI closed at 5,298.04, up 4.10% (208.90 points) from the previous trading day. The KOSPI opened at 5,299.10, up 209.96 points (4.13%) from the previous trading day. Right after the open, it crossed the 5,300 level and climbed to the 5,310 level during the session. It then fluctuated and finished just below 5,300.
On the Korea Exchange, combined buying by foreigners and institutions lifted the index. Foreign investors bought 448.5 billion won, turning to net buyers, and institutions added firepower with a record net purchase totaling 2.7123 trillion won.
Notably, most of the institutional buying was concentrated in the financial investment category (2.4143 trillion won), which reflects individuals' exchange-traded fund (ETF) flows. Meanwhile, taking advantage of the rebound to realize gains, individual investors dumped 3.2978 trillion won in net sales.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "As external concerns eased, foreign investors returned," and explained, "Supply emerged as individuals, who had supported the index's downside, moved to take profits."
Semiconductor bellwethers Samsung Electronics and SK hynix led the session. Samsung Electronics rose 4.92% from the previous trading day, and SK hynix climbed 5.72% at the close.
Chip stocks appear to have attracted significantly improved sentiment as concerns about a U.S.-driven artificial intelligence (AI) bubble eased.
Jensen Huang, Nvidia chief executive officer (CEO), said in a recent interview, "AI infrastructure demand is through the roof." As a result, on the 6th (local time), all three major U.S. indexes closed higher. In addition, news that Micron, the No. 3 player, was seen as eliminated from competition in Nvidia's sixth-generation High Bandwidth Memory (HBM4) also appears to have had a favorable impact on domestic chip stocks.
Among securities stocks, Mirae Asset Securities stood out. Mirae Asset Securities, which released earnings that day, said it posted 1.5936 trillion won in consolidated net profit last year. Lee Jae-won noted, "Transaction value, deposits, and margin balances are all the highest in history," adding, "The SpaceX momentum also contributed."
Lee Kyung-min, a researcher at Daishin Securities, said, "The broadly positive mood across Asian markets also acted as a tailwind," explaining, "In Japan's lower house election, the Liberal Democratic Party, led by Prime Minister Takaichi, secured a sole majority, and Japanese stocks jumped more than 5% intraday."
Meanwhile, the KOSDAQ index closed at 1,127.55, up 46.78 points (4.33%) from the previous trading day.
In the KOSDAQ market, individuals recorded net sales of 605.9 billion won. In contrast, foreigners bought a net 166.2 billion won and institutions bought a net 484.5 billion won. However, 378.6 billion won of the institutional flow came from financial investment firms, where individuals' ETF purchases are tallied.
The KOSDAQ index also appears to have benefited from a recovery in risk appetite as some AI fears eased. Researcher Lee Jae-won explained, "With sentiment recovering, large caps surged, centered on key themes such as biotech and robotics."