The KOSPI, which had plunged for two straight days, rebounded more than 3% early in the session but gave back most of the gains and closed slightly higher. Institutions and foreigners turned net buyers, but a flood of large-scale selling by individual investors kept the index from recovering its losses.
The KOSDAQ, which had recovered the 800 level intraday, also surrendered all gains and fell back below 800. As worries about a semiconductor peak-out and renewed U.S.-Iran tensions continued to sap risk appetite, volatility persisted.
On the 9th, the KOSPI finished at 7,291.91, up 45.12 points (0.62%) from the previous session. Right after the open, it rose more than 3% and even recaptured the 7,500 level intraday, but pared gains as time went on. It even slipped into the low 7,000s intraday to turn lower, but recovered part of the losses late to close higher.
Institutional buying was strong, but individual selling was also hefty. On a combined basis for the Korea Exchange (KRX) and NEXTRADE (NXT), institutions were net buyers of more than 1.86 trillion won in the main board, and pensions also maintained a buying bias. In contrast, individuals were net sellers of more than 2 trillion won, taking profits. Foreigners also net bought 280 billion won, but it was not enough to sustain the strong rebound momentum from early trade.
Top market-cap stocks were mixed. Samsung Electronics(005930), which had rebounded strongly early on, sharply trimmed gains and ended slightly higher, while Hyundai Motor (-3.68%), Kia (-7.65%), Samsung Life Insurance (-5.78%) and Samsung C&T (-4.18%) were weak.
By contrast, SK hynix(000660), which is set to list American depository receipts (ADR) on the Nasdaq in the United States on the 10th, rose 5.30%, showing relatively resilient action among blue chips. SK Square also gained strongly.
Jung Da-un, an analyst at LS Securities, said, "In a situation where doubts about the sustainability of AI investment have come to the fore, Samsung Electronics' earnings release turned into a 'sell-on' issue," adding, "As Samsung Electronics and SK hynix wavered, the flow of funds that had amplified upside pressure worked in the opposite direction, which also widened losses."
Military tensions between the United States and Iran also weighed on sentiment. As the United States continued airstrikes for two straight days focused on southern Iran, reports that Iran's Islamic Revolutionary Guard Corps (IRGC) struck U.S. bases in Kuwait and Bahrain fueled ongoing geopolitical jitters.
However, experts said shifts in sentiment around semiconductors are having a bigger impact on the market than Middle East risks.
Kim Sung-geun, an analyst at Mirae Asset Securities, said, "Volatility related to tech is a greater threat to the market than conflict with Iran," adding, "As long as concerns about capital expenditure (CAPEX) cutbacks—sparked by Meta's entry into the cloud business—persist, the volatile environment around semiconductors could continue for the time being."
The KOSDAQ also failed to extend the anticipated rebound. The KOSDAQ index closed at 794, up 1.15% from the previous session. It briefly regained the 800 level intraday, but gave back most gains in the afternoon to slip below 800 again. Institutions turned net buyers of 320 billion won, but net selling of 360 billion won by individuals dulled the upward momentum.
Still, the securities industry views this pullback as a short-term correction rather than a trend decline. With fundamentals in the domestic market, such as earnings and exports, remaining solid, some analysts said the recent correction has actually improved valuations.
Lee Kyung-min, an analyst at Daishin Securities, said, "I believe the recent market plunge is a short-term correction within a medium- to long-term uptrend," adding, "If price stability becomes visible on lower oil, and earnings improve on strong exports and currency effects, the valuation appeal of the KOSPI and major sectors will come back into focus."