Despite simultaneous buying by institutions and foreigners, the KOSPI gave up all of its early rebound and turned weaker again. It jumped more than 3% right after the open to recoup losses, but as gains in large-cap semiconductor stocks slowed, the index reversed lower. The KOSDAQ, which had reclaimed the 800 level intraday, also gave back most of its gains and is again below 800.
As of 11:44 a.m. on the 9th, the KOSPI was trading at 7,225.48, down 21.31 points (0.29%) from the previous session. The index climbed to as high as 7,543.86 right after the open, posting gains in the 3% range, but then quickly gave back the advance and sank to the 7,230 level.
On the supply-demand side, institutions and foreigners are supporting the index. Institutions have a net buy of 1 trillion won, foreigners 120 billion won, while individuals are net selling 1 trillion won worth. Among institutions, the national pension fund has a net buy of 550 billion won.
The rally in large-cap semiconductor stocks that led the early rebound also slowed markedly. Samsung Electronics was up nearly 5% early on but has now turned to a decline of more than 1%. SK hynix(000660) also showed smaller gains than early in the session, despite expectations ahead of its Nasdaq depository receipts (ADR) listing in the United States.
Interest among overseas investors in SK hynix ADRs was still reported to be high. According to foreign media, subscriptions for the ADR bookbuilding were more than seven times the offering, with the subscription size reaching about $171.5 billion (about 260 trillion won).
On the 10th (local time) in New York, the United States, a ceremony will be held to mark the ADR Nasdaq listing. Key executives, including SK Group Chairman Chey Tae-won, plan to directly explain competitiveness in the AI memory market and mid- to long-term growth strategies to local investors.
Leveraged ETFs related to SK hynix also surged early in the session but are widening swings in line with movements in the underlying stock.
Yumyeong-gan, a researcher at Mirae Asset Securities, said, "The recent sharp market correction is judged to be driven largely by technical factors stemming from the short gamma structure of leveraged ETFs (a phenomenon in which the underlying is bought when the stock price rises and sold more when it falls), rather than fundamentals," and noted, "This is a phase that requires continued monitoring of leveraged ETFs."
At the same time, the KOSDAQ index was at 785.98, up 0.98 point (0.12%) from the previous session. While institutions are net buying 237 billion won, individuals and foreigners are net selling 207 billion won and 30 billion won, respectively.
In the KOSDAQ market, gains have also narrowed for semiconductor materials, parts, and equipment stocks that were strong early in the session. FADU(440110) (9.12%), SIMMTECH (8.80%), Jusung Engineering (1.75%), and HPSP (1.70%) are increasing intraday volatility.
Biotech shares also rose early on, but moves are diverging by stock. D&D Pharmatech (3.16%), Voronoi (2.93%), and Sam Chun Dang Pharm (2.01%) are mixed amid a volatile market.