The KOSPI index surged more than 5% in early trading, reclaiming the 7100 mark. This increase is attributed to a strong rebound in semiconductor stocks on the U.S. market, leading to increased buying of major companies like Samsung Electronics and SK Hynix.
As of 9:05 a.m. on July 22, the KOSPI was up 390.83 points (5.79%) at 7138.78 compared to the previous trading day.
Foreign investors led the index's rise with a net purchase of 476.9 billion won, while individual and institutional investors sold a net 287.8 billion won and 188.9 billion won, respectively.
Most of the top market capitalization stocks are performing well. Samsung Electronics is trading at 274,500 won, up 5.98%, while SK Hynix has surged 8.71% to 1,996,000 won. Other gainers include Samsung Electro-Mechanics (11.53%), SK Square (11.09%), Samsung Life Insurance (7.75%), and Hyundai Motor (6.14%).
The KOSPI's rapid rise triggered a temporary halt in program buying orders, known as a 'buy sidecar.' According to the Korea Exchange, the buy sidecar was activated at 9:06 a.m. when the KOSPI200 futures price rose more than 5% above the reference price for one minute. This marks the 20th activation of the buy sidecar this year.
Market analysts are focusing on the rebound in semiconductor stocks and foreign investment. Seo Sang-young, a researcher at Mirae Asset Securities, stated, "It is important to pay attention to the rebound buying in semiconductor companies and foreign investment flows." He noted that the MSCI Korea Index ETF rose 6.16% overnight, and the Philadelphia Semiconductor Index increased by 5.21%, positively impacting the domestic market.
The KOSDAQ index is also rising, showing an increase of 29.55 points (3.92%) to 782.89 at the same time. Individual investors have net purchased 17.1 billion won, while foreign and institutional investors have net sold 8.2 billion won and 8.6 billion won, respectively.
Among the top KOSDAQ stocks, Rainbow Robotics has surged 19.08%, and Wonik IPS is up 11.11%. Other strong performers include EcoPro (5.98%), EcoPro BM (4.72%), JUSUNG Engineering (5.85%), and Rino Industry (5.14%).
The strength of the domestic stock market today is attributed to the rebound in U.S. semiconductor stocks. In the New York market, Micron rose 12.0%, and SanDisk increased by 14.2%. The Dow Jones Industrial Average closed up 0.74%, the S&P 500 rose 0.89%, and the Nasdaq Composite gained 1.29%.
Recent assessments from global investment banks indicate that the domestic market, which has seen significant declines, is nearing a bottom. Morgan Stanley's recent 'Korea Market Strategy' report stated that while the recent correction has been deep, it does not indicate a technical bear market, maintaining a KOSPI target of 9000.
However, reflecting the potential for slowing profit growth, the bear market scenario target has been lowered from 6500 to 6000. The expected trading range for the next 3 to 6 months is projected to be between 6000 and 9000. Morgan Stanley noted that while the KOSPI and semiconductor stocks' 12-month forward valuations are approaching historical lows, uncertainties surrounding AI investments, hyperscaler capital expenditures, and semiconductor supply conditions may continue to drive volatility.
* This article has been translated by AI.
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