The KOSPI index rebounded on the back of bargain hunting in semiconductor stocks, successfully recovering after four days of decline. It opened with a surge of over 3%, but geopolitical risks in the Middle East and profit-taking led to a significant reduction in gains by the end of the trading session.
According to the Korea Exchange, the KOSPI closed at 7,291.91, up 45.12 points (0.62%) from the previous trading day.
The index started the day at 7,486.64, up 239.85 points (3.31%), buoyed by a rebound in U.S. semiconductor stocks and perceptions of oversold conditions prompting bargain hunting. However, uncertainties stemming from the Middle East and increased market volatility caused the index to lose some of its gains, fluctuating in the upper 7,200 range before closing at 7,290.
On Wall Street, the New York Stock Exchange closed mixed as buying interest returned for semiconductor stocks that had recently seen sharp declines. Companies like Micron (up 1.11%), SanDisk (up 6.77%), and NVIDIA (up 3.65%) contributed to improved investor sentiment in South Korea's semiconductor sector.
In the securities market, foreign and institutional investors made net purchases of 305.5 billion won and 1.8663 trillion won, respectively, helping to lift the index. In contrast, individual investors sold a net 2.1176 trillion won.
Among the top market capitalization stocks, Samsung Electronics (up 0.18%), SK Hynix (up 5.30%), SK Square (up 4.49%), Samsung Electro-Mechanics (up 0.95%), and KB Financial (up 0.23%) closed higher. Conversely, Hyundai Motor (down 3.68%), LG Energy Solution (down 0.63%), Samsung Life Insurance (down 5.78%), Samsung C&T (down 4.18%), and Samsung Biologics (down 2.79%) ended lower.
The KOSDAQ index also rose, closing at 794.00, up 9.00 points (1.15%).
In the KOSDAQ market, foreign and institutional investors made net purchases of 46.4 billion won and 321.1 billion won, while individual investors sold a net 360.1 billion won.
Among the top KOSDAQ stocks, EcoPro (up 1.79%), Rainbow Robotics (up 0.58%), JUSUNG Engineering (up 11.50%), Kolon TissueGene (up 0.34%), HLB (up 4.19%), Rino Technology (up 1.16%), Wonik IPS (up 2.14%), and Samchundang Pharm (up 2.06%) saw gains. In contrast, Alteogen (down 4.31%) and EcoPro BM (down 0.98%) faced declines.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The domestic market opened higher due to the influx of bargain hunting in the semiconductor sector, but continued noise from the Middle East and market volatility led to fluctuations without a clear direction. The geopolitical uncertainty, including mixed statements from President Trump regarding Iran and news of additional airstrikes, has dampened investor sentiment."
He added, "While there has been some improvement in investor sentiment due to bargain hunting in the recently plummeted semiconductor sector, profit-taking pressures remain. For the time being, uncertainties surrounding the Middle East risks and the semiconductor market may increase market volatility."
* This article has been translated by AI.
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