On July 15, the KOSPI index rebounded dramatically, regaining the 7,000-point mark, driven by expectations of interest rate cuts due to easing inflation in the U.S. and a recovery in global semiconductor investment sentiment. After plummeting to the 6,400 range the previous day, the market surged over 8% during the day, fueled by more than 2 trillion won in net purchases by foreign investors and a spike in semiconductor stocks.
According to the Korea Exchange, the KOSPI closed at 7,284.41, up 427.58 points (6.24%) from the previous trading day. The index opened at 7,082.91, up 226.08 points (3.30%), and quickly reclaimed the 7,000 mark. It even reached a high of 7,424.18 during the day, marking an increase of over 8%.
The rebound was led by foreign investors, who net purchased 23.227 trillion won in the stock market, while institutions also net bought 1.827 trillion won. In contrast, individual investors sold off 24.680 trillion won in profit-taking.
Foreign buying was particularly concentrated in semiconductor stocks. Major companies such as SK Hynix, Samsung Electronics, Hanmi Semiconductor, SK Square, and LG Innotek were among the top net purchases by foreign investors. Domestic semiconductor stocks also showed strong performance, with Samsung Electronics rising 6.27% and SK Hynix climbing 8.83%. Notably, Hanmi Semiconductor surged 29.88% after reporting strong earnings the previous day, with second-quarter consolidated revenue reaching 251.1 billion won, a 39.5% increase year-on-year, marking a record high for the quarter. Operating profit rose 51.0% to 130.3 billion won, with an operating margin of 51.9%, the highest ever recorded.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The recent sharp decline in the semiconductor sector in the U.S. has attracted bargain hunters, leading to a bullish market. In particular, the 27% surge in SK Hynix's ADR has stimulated investment sentiment in the domestic semiconductor sector."
Expectations for an improvement in the global semiconductor market also supported investor sentiment. On the same day at 2 p.m. (Korean time), ASML reported second-quarter revenue of 9.33 billion euros and a gross margin of 54%, exceeding market expectations. The company also raised its annual revenue guidance from 36-40 billion euros to 43-45 billion euros.
The rebound in the stock market was further bolstered by lower-than-expected U.S. consumer price index (CPI) figures. The June CPI rose 3.5% year-on-year, below the market forecast of 3.8%, while the core CPI was at 2.6%, also below the consensus of 2.8%.
Lee Eun-taek, a researcher at KB Securities, commented, "The CPI report was generally positive, with a significant slowdown in sticky core inflation excluding housing costs. This, combined with heightened fear sentiment and an oversold market, led to the surge in semiconductor stocks."
* This article has been translated by AI.
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