Kospi Jumps 5.22% in Early Trade, Reclaims 5,200 as Buy Sidecars Triggered on Kospi and Kosdaq
Summary
- The Kospi jumped 5.22% in early trading to reclaim the 5,200 level, triggering buy sidecars on both major South Korean markets.
- A rebound in U.S. stocks, a 6.86% gain in the Philadelphia Semiconductor Index, and falling international oil prices improved investor sentiment and helped drive gains in local semiconductor shares.
- On the Kospi market, institutions were net buyers of 257.5 billion won, while retail and foreign investors were net sellers. The Kosdaq also rose 4.61%, led by semiconductor and growth stocks.
Forecast Trend Report by Period
The Kospi rose above 5,200 in early trading, lifted by gains on Wall Street and advances in heavyweight semiconductor stocks.
As of 9:20 a.m. on Nov. 10, the Kospi stood at 5,285.27, up 262.22 points, or 5.22%, from the previous session. The benchmark surged shortly after the open, triggering a buy-side sidecar on the Kospi market that temporarily suspended program buy orders for the first time in nine trading days. A buy-side sidecar was also triggered on the Kosdaq market.
The sharp rally in South Korean equities appeared to reflect the rebound in U.S. stocks the previous day. On Nov. 9, the Dow Jones Industrial Average rose 2.15%, while the S&P 500 and Nasdaq climbed 2.35% and 2.74%, respectively. The Philadelphia Semiconductor Index jumped 6.86%.
Investor sentiment improved as international oil prices fell, with buying concentrated in technology shares that had recently come under pressure. Shares of U.S. chipmakers AMD and Broadcom surged 13.3% and 8.8%, respectively. The move appeared to support South Korean semiconductor stocks as well.
Among top Kospi stocks by market capitalization, Samsung Electronics rose 5.58% to 200,750 won. SK Hynix gained 8.27% to 1,229,000 won. SK Square climbed 8.03%, Samsung Electro-Mechanics advanced 5.69%, and Samsung Electronics preferred shares added 6.16%. Other major names also rose, including Hyundai Motor, up 3.13%, KB Financial Group, up 3.51%, and LG Energy Solution, up 2.67%.
Institutional investors led the gains, buying a net 257.5 billion won worth of shares on the Kospi market. Retail investors were net sellers of 269.4 billion won, while foreign investors sold a net 17 billion won.
The Kosdaq also extended its advance. At the same time, the index was up 28.05 points, or 4.61%, at 667.04. Alteogen rose 6.53%, Ecopro gained 6.11%, and Rainbow Robotics added 4.79%. Semiconductor-related stocks also traded higher, with EO Technics up 8.99%, Simmtech up 7.81%, and Leeno Industrial up 6.03%.
On the Kosdaq market, retail and institutional investors were net buyers of 27.6 billion won and 22.2 billion won, respectively, while foreign investors were net sellers of 47.6 billion won. In Seoul's foreign-exchange market, the won traded at 1,345.2 per dollar, up 3.2 won from the previous session.
