On the 22nd, the KOSPI index closed slightly higher, extending the previous day's sharp rally. With labor and management at Samsung Electronics reaching a wage deal and easing domestic risk, expectations for U.S.-Iran cease-fire talks spreading appeared to help. The KOSPI index was fewer than about 150 points from reclaiming 8,000.
The KOSDAQ market posted strong gains. The Public Participation Public Growth Fund, launched that day, sold out immediately after release, drawing strong interest and lifting sentiment toward the KOSDAQ market. The KOSPI index surged 5%.
The KOSPI index finished at 7,847.71, up 32.12 points (0.41%) from the previous session. Foreign investors were net sellers of nearly 2 trillion won in the main board, but individuals and institutions net bought 1 trillion won and 760 billion won, respectively, supporting the index.
The KOSPI index opened slightly higher, briefly turned lower in the morning, and then ended with a modest gain. Samsung Electronics broke 300,000 won early in the session to hit a record high, but pared gains to close down more than 2%. Amid fallout from Starbucks Korea's marketing controversy over "Tank Day," E-MART, a major shareholder of Starbucks Korea, and Shinsegae, which counts E-MART as an affiliate, fell about 3% and 7%, respectively.
The star of the day was the KOSDAQ market. The KOSDAQ index closed at 1,161.13, up 55.16 points (4.99%) from the previous session. Just 33 minutes after the open, a buy-sidecar was triggered, suspending the validity of program buy quotes. It was the second straight session with a sidecar after the previous day.
As expectations grew that the Public Participation Growth Fund launched that day would channel money into the KOSDAQ market, buying swelled. The fund allocates more than 60% of its capital intensively to future innovation strategic industries such as artificial intelligence (AI), semiconductors, biotech, robots and secondary batteries.
Kang Jin-hyeok, analyst at Shinhan Investment & Securities, said, "The Public Growth Fund sold out within 30 minutes of launch, refocusing interest on growth stocks," and noted, "With expectations of inflows into advanced industries improving sentiment, gains outpaced KOSPI."
The top 10 KOSDAQ stocks by market capitalization all soared. No. 1 EcoPro BM rose 10.77%, and EcoPro jumped nearly 13%, overtaking Alteogen to take the No. 2 spot by market cap. In particular, pharma and biotech names advanced in unison, including LigaChem Biosciences (12.83%), ABL Bio (9.37%) and HLB (8.76%).
In addition, on news that the U.S. government directly invested equity in quantum computing corporations, domestic quantum cryptography and quantum computing-related stocks rose together, including Photon (30.00%), AXGATE (24.19%) and Dream Security (12.88%).
Lee Kyung-min, analyst at Daishin Securities, said, "Amid Pakistan's mediation, news that the United States and Iran are preparing a final agreement spread expectations for cease-fire talks," adding, "With semiconductors and robots taking a breather, a sector-rotation rally emerged."
Meanwhile, next Monday (on the 25th) is a substitute holiday for "Buddha's Birthday," and the market will be closed. Markets in the United States for "Memorial Day," as well as in the United Kingdom and Hong Kong, will also be shut.