▲ The KOSPI index is displayed at the Hana Bank dealing room in Jung-gu, Seoul, on the afternoon of July 10, after closing at 7,475.94, up 184.03 points (2.52%) from the previous trading session. (Photo: Yonhap News)
The KOSPI recovered the 7,400 level today (July 10), rising more than 2% as investor sentiment toward semiconductors improved.
The KOSPI closed at 7,475.94, up 184.03 points (2.52%) from the previous day.
Compared to the end of last week (July 3, 8,088.34), this represents a 7.6% decline over the course of this week.
The index opened at 7,552.49, up 260.58 points (3.57%) from the previous session, and at one point during the day, it surged 5.66% to 7,704.93, briefly surpassing the 7,700 mark.
As the KOSPI surged, a sidecar—a temporary suspension of program buy orders—was triggered in the KOSPI market at approximately 12:54 p.m.
A KOSPI sidecar is triggered when the price of KOSPI 200 futures rises by more than 5% from the reference price and sustains that level for one minute, suspending the validity of program buy orders for five minutes.
About 14 minutes later, a buy sidecar was also triggered in the KOSDAQ market.
A KOSDAQ buy sidecar is triggered when the KOSDAQ 150 futures price rises by more than 6% from the reference price and the KOSDAQ 150 index rises by more than 3% from the previous trading day's closing figure, with both conditions sustained for one minute.
It has been only two days since sidecars were triggered in both markets simultaneously, the last time being on July 8.
At that time, sell sidecars were triggered in both the KOSPI and KOSDAQ markets.
With today's events, the number of sidecar triggers in the domestic stock market this year has increased to 34 for the KOSPI and 19 for the KOSDAQ.
The KOSPI market has already far exceeded the 26 triggers recorded during the 2008 financial crisis, and the KOSDAQ market has matched its record of 19 from that same period.
The KOSPI 200 Volatility Index (VKOSPI), often referred to as the Korean fear index, fell 8.58% from the previous day to 78.15 amid the bullish market.
This marks the first time it has fallen below the 80 level in three weeks, since June 19.
Meanwhile, as of 3:30 p.m., the won-dollar exchange rate in the Seoul foreign exchange market was 1,501.4 won, down 4.7 won from the previous day's base rate.
The main driver behind today's KOSPI rally was institutional investors.
As of the market close, institutions were the sole net buyers in the KOSPI market, purchasing 1.1319 trillion won worth of shares.
In contrast, foreign investors, who had been net buyers for two consecutive days until yesterday, recorded a net sale of 329.9 billion won today.
Individual investors also shifted to net selling during the day, with a net selling position of 772.8 billion won.
Foreign investors also recorded a net sale of 142.2 billion won in the KOSPI 200 futures market.
Individual and institutional investors were net buyers of 105.1 billion won and 600 million won, respectively.
The domestic stock market, which had been sluggish earlier this week, appeared to regain upward momentum ahead of the weekend.
Lee Kyung-min, an analyst at Daishin Securities, analyzed, "The confirmation of solid investment demand for semiconductors supported investor sentiment and acted as upward pressure on the domestic stock market."
Kang Jin-hyuk, an analyst at Shinhan Securities, stated, "Despite the volatility in SK Hynix's stock price, risk-on sentiment has recovered as noise surrounding the AI cycle has subsided."
With news today that the offering price for SK Hynix's American Depositary Receipts (ADR) has been finalized at 149 dollars per share, investors are once again focusing on the two semiconductor giants.
The two stocks moved in different directions today.
SK Hynix closed at 2.18 million won, down 0.27%.
The stock opened 5.03% higher and rose to as high as 2.305 million won early in the session, but it briefly turned downward later.
Through this offering, SK Hynix is expected to raise 26.507 billion dollars (approximately 40 trillion won).
This is expected to be the largest IPO by a foreign company in the U.S., surpassing the previous record held by Alibaba (25 billion dollars).
However, as expectations had already been built up, some profit-taking selling may have occurred during the session.
Samsung Electronics rose 2.52% to 285,000 won.
The stock opened 4.68% higher at 291,000 won and climbed to 298,000 won during the session, putting it on the verge of reclaiming the 300,000 won level.
Many large-cap stocks, including SK Square (6.18%), Samsung Electro-Mechanics (6.10%), Hyundai Motor (2.69%), LG Energy Solution (3.99%), Samsung Life Insurance (4.45%), and KB Financial (7.58%), saw their stock prices rise.
Conversely, some stocks such as HD Hyundai Heavy Industries (-0.59%), KT&G (-1.64%), S-Oil (-1.05%), and Korea Aerospace Industries (-3.80%) declined.
Most sectors within the KOSPI rose.
Among them, medical and precision equipment (9.10%), construction (6.48%), and securities (5.92%) showed notable gains.
Telecommunications (-1.55%) was the only sector to decline today.
The market saw 802 stocks rise, indicating a broad recovery, while 92 stocks fell.
The KOSDAQ index closed at 837.43, surging 43.43 points (5.47%) from the previous day.
Compared to the end of last week (868.41), this is a 3.6% decline.
The index recovered the 800 level from the start, opening at 807.0, up 13.00 points (1.64%), and jumped 6.53% to 845.88 at one point during the session.
In the KOSDAQ market, institutions were also the sole net buyers, purchasing 582.5 billion won worth of shares.
Individual and foreign investors were net sellers of 424.5 billion won and 159.7 billion won, respectively.
Stocks such as Alteogen (8.00%), EcoPro BM (9.06%), EcoPro (8.06%), Jusung Engineering (7.57%), and Rainbow Robotics (5.22%) rose.
On the other hand, HLB (-29.89%) and Peptron (-29.94%), which faced questions regarding new drug development and treatment research, as well as D&D Pharmatech (-2.66%), Classys (-3.19%), and Voronoi (-1.66%), were weak.
The trading value for the KOSPI and KOSDAQ markets today was recorded at 31.5476 trillion won and 6.8726 trillion won, respectively.
The total trading value for the pre-market and main market of the alternative trading system Nextrade was 16.4084 trillion won.
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