The KOSPI, which had plunged for two straight days, rebounded more than 3% early but gave back most of the gains and closed slightly higher. Institutions and foreigners turned net buyers, but massive selling by individual investors poured in, keeping the index from recovering its losses.
The KOSDAQ, which had reclaimed the 800 level intraday, also gave up all its gains and fell back below 800. With worries about a semiconductor peak-out and renewed U.S.-Iran tensions weighing on sentiment, 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 briefly reclaimed the 7,500 level, but pared gains as time went on. It even slipped to the low 7,000s intraday to turn lower, but recovered part of the losses at the close to finish higher.
Institutional buying was strong, but individual selling was also formidable. On a combined basis for the Korea Exchange (KRX) and NEXTRADE (NXT), institutions were net buyers of more than 1.86 trillion won on the main board, and pension funds also maintained a buying bias. By contrast, individuals were net sellers of more than 2 trillion won, taking profits. Foreigners also bought a net 280 billion won, but it was not enough to sustain the strong rebound momentum through the close.
Top market-cap stocks were mixed. Samsung Electronics(005930), which had rebounded sharply early, cut gains to finish 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 firm action among large caps. SK Square also gained strongly.
Jeong Da-un of LS Securities said, "In a situation where doubts about the sustainability of AI investment have come to the fore, Samsung Electronics' earnings release became a 'sell on' issue," and added, "With Samsung Electronics and SK hynix wobbling, the flow of funds that had amplified upside pressure worked in the opposite direction, which also contributed to the deeper losses."
Heightened military tensions between the United States and Iran also weighed on sentiment. As the United States carried out airstrikes for two consecutive days centered on southern Iran, reports that the 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 greater impact on the market than Middle East risks.
Kim Seong-geun of Mirae Asset Securities said, "Volatility related to tech is a bigger threat to the market than conflict with Iran," adding, "As long as concerns about a pullback in capital expenditures (CAPEX), triggered 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 expected rebound. The KOSDAQ index closed at 794, up 1.15% from the previous session. It briefly reclaimed the 800 level intraday, but gave back most of the gains in the afternoon to slip below 800 again. Institutions turned net buyers of 320 billion won, but continued net selling of 360 billion won by individuals dampened upward momentum.
Still, the securities industry is interpreting this pullback as a short-term correction rather than a trend shift lower. With fundamentals in Korea's stock market, including earnings and exports, remaining solid, some said the recent correction has actually improved valuations.
Lee Kyung-min of Daishin Securities said, "We see the recent plunge as a short-term correction within a medium- to long-term uptrend," adding, "If falling oil prices make disinflation more visible and earnings improve on the back of strong exports and currency effects, valuation appeal for the KOSPI and major sectors will come back into focus."