The KOSPI tried to rebound after plunging more than 10% over two days, but it fell back below the 6,500 level early in the session and is trading mixed. Investor sentiment remains weak as Middle East geopolitical risks persist despite a rebound in U.S. semiconductor stocks.
On the 21st, the KOSPI opened at 6,553.88, up 37.61 points (0.57%) from the previous session. However, it gave up most of its gains and turned lower, trading around the 6,450 level as of 9:14 a.m. The KOSPI plunged 10.54% (7,284.41→6,516.27) over two days on the 16th and 20th.
In the stock market, individuals are net buying 219 billion won, while institutions are net selling 220 billion won. Among institutions, pension funds are net selling 60 billion won. Foreign investors started as net buyers but turned to net sellers, though the scale is not large.
Large-cap stocks are mixed. Samsung Electronics(005930) and SK hynix are strong, while Hyundai Motor and KB Financial are weak.
Han Ji-young at Kiwoom Securities said, "Despite U.S.-Iran geopolitical uncertainty, the domestic stock market is expected to attempt a rebound as bargain hunting flows in on the rebound of U.S. semiconductor stocks and the perception that leading sectors, including semiconductors, have fallen excessively."
However, some expect market volatility to continue for the time being. This month, sidecar halts for sell and buy programs were triggered nine times over 13 sessions on the KOSPI, and seven times on the KOSDAQ. Circuit breakers were also triggered twice during the same period, significantly amplifying market volatility.
The researcher said, "Market concentration remains, with the combined market capitalization of Samsung Electronics and SK hynix accounting for more than half of the KOSPI," adding, "The fact that single-stock leverage transaction value accounts for 40% of total KOSPI transaction value is also a factor sustaining the volatile market."
Overnight, New York stocks saw bargain hunting centered on semiconductor shares, but the three major indexes all closed lower as Middle East geopolitical risks resurfaced.
On the 20th (local time), the Dow Jones Industrial Average closed at 51,839.26, down 0.59% from the previous session. The S&P 500 fell 0.19% to 7,443.28, and the Nasdaq fell 0.05% to 25,508.07.
Semiconductor stocks held up relatively well. AMD rose 1.58%, Broadcom 1.98%, and Micron 1.94%, while the Philadelphia Semiconductor Index gained 0.60%. However, SK hynix American depositary receipts (ADR) surged more than 6% intraday before giving up all gains to close down 1.86%.
The KOSDAQ also turned weaker after a higher open. The KOSDAQ opened at 750.07, up 0.43 points (0.06%) from the previous session, but is now down around 2%. The KOSDAQ plunged 9.62% (829.43→749.64) over the past two days, falling to the lowest level of the year.
Large-cap stocks are mixed. Alteogen(196170), EcoPro BM, and EcoPro are weak, while PSK, HLB, and FADU are rising.