PiCK
Kospi Opens 2% Higher After ‘Black Thursday’ Rout, Tests 5,700
Summary
- The Kospi rose 2.53% after plunging more than 7% in the previous session and was attempting to reclaim the 5,700 level.
- In the benchmark market, retail and institutional investors were net buyers, while foreign investors extended their selling trend with net sales of 361.9 billion won.
- Large semiconductor stocks including Samsung Electronics and SK Hynix, along with the Kosdaq index, rebounded as bargain buying lifted share prices.
Forecast Trend Report by Period
Opens 1.8% higher, approaches 5,700
Samsung Electronics, SK Hynix rebound together
Retail and institutions buy; foreigners sell
The Kospi opened higher on October 16, recouping part of the previous session’s losses after plunging more than 7% a day earlier. Large-cap chip stocks including Samsung Electronics and SK Hynix rebounded, while retail and institutional investors turned buyers. Investor sentiment, badly shaken in the prior session, also steadied somewhat after Wall Street rose overnight.
As of 9:57 a.m., the Kospi was trading at 5,694.48, up 140.26 points, or 2.53%, from the previous session. The index opened at 5,653.99, up 99.77 points, or 1.80%. It later climbed as high as 5,699.83, attempting to reclaim the 5,700 level.
In the benchmark market, retail investors were net buyers of 116.5 billion won, while institutions bought a net 144.9 billion won. Foreign investors, by contrast, were net sellers of 361.9 billion won, extending their selling trend.
Buying returned to semiconductor bellwethers that had slumped the previous day. Samsung Electronics rose 4,500 won, or 2.14%, to 214,500 won, while SK Hynix gained 29,000 won, or 2.30%, to 1.291 million won. Hyundai Motor climbed 5.25%, while Samsung Electro-Mechanics and SK Square rose 3.18% and 3.01%, respectively.
The Kosdaq also widened its gains. At the same time, the tech-heavy index was up 27.92 points, or 3.67%, at 788.74. It opened at 772.17, up 11.35 points, or 1.49%, from the previous close, and moved closer to the 790 mark.
The rebound came after circuit breakers were triggered in both markets a day earlier, temporarily halting trading. On October 15, the Kospi closed at 5,554.22, down 454.59 points, or 7.57%. Selling intensified as concerns mounted over U.S. inflation and the possibility of further tightening, while questions also surfaced about the sustainability of AI infrastructure investment. Samsung Electronics and SK Hynix had fallen 9.48% and 11.06%, respectively.
The overnight rebound in U.S. stocks also lent support to South Korea’s market. With U.S. Treasury yields falling, the Dow Jones Industrial Average rose 1.08%, while the S&P 500 and Nasdaq Composite gained 0.33% and 0.08%, respectively. Bargain buying after the sharp selloff appeared to be lifting share prices.
