The KOSPI fell below the 6,400 level early in the session, then extended gains as dip buying flowed in. Foreign investors also turned to net buyers, helping the rebound.

A market board in the Hana Bank dealing room in Jung-gu, Seoul, displays KOSPI and other market indicators on the 21st; the KOSPI opens at 6553.88, up 0.57% (37.61 points) from the prior day's 6516.27. /Courtesy of News1

As of 11:22 a.m. on the 21st, the KOSPI was trading at 6,647.86, up 131.59 points (2.02%) from the previous session. The KOSPI opened slightly higher, then turned lower early in the session to 6,429.03, but rebounded as buying came in.

In the main board, foreigners and institutions are net buying 120 billion won and 600 billion won, respectively. Foreign investors, who were small net sellers early in the session, have turned to a buying bias, and among institutions, pension funds are also net buying 260 billion won. Individuals, by contrast, are net selling 720 billion won, taking profits.

Most of the heavyweights by market cap are also strong. Samsung Electronics(005930) is up in the 4% range, and SK hynix is up in the 2% range. The effect of dip buying focused on chip stocks on Wall Street overnight appears to have carried over to the domestic market. AMD, Broadcom and Micron closed higher, and the Philadelphia Semiconductor Index rose 0.60%.

Brokerages largely view this rebound as technical rather than a trend reversal. Lee Sang-jun of NH Investment & Securities said, "There is no news to flip the trend, nor have the fundamentals improved significantly," adding, "With the KOSPI 12-month forward price-earnings ratio (PER) down to 5.9 times—near a historical low—price appeal has come to the fore, leading to a technical rebound."

Analysts also said positive views from overseas investment banks (IBs) helped improve sentiment to a degree. Lee Sang-yeon of Shinyoung Securities noted, "It appears overseas IBs' recent positive views on the semiconductor sector also had an impact," and explained, "Foreign investors who were net sellers early in the session turning to net buyers is also aiding supply-demand conditions."

The KOSDAQ, by contrast, remains weak. At the same time, the KOSDAQ was trading at 733.84, down 15.80 points (2.11%) from the previous session. It briefly reclaimed the 750 level early in the session but then widened losses again.

Most of the top market-cap names are also declining. Rainbow Robotics is up about 1%, but Alteogen, EcoPro BM and EcoPro are weak.

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