The KOSPI index surged more than 3% in early trading on November 4, recovering above the 5,800 mark, buoyed by strong performances in U.S. semiconductor stocks. This rebound comes a day after the domestic market experienced a sharp decline due to concerns over artificial intelligence (AI) investments and foreign selling.
According to the Korea Exchange, as of 9:12 a.m., the KOSPI was trading at 5,821.90, up 173.11 points (3.06%) from the previous trading day.
In the securities market, foreign investors purchased a net 92 billion won, while institutions bought a net 12.1 billion won. In contrast, individual investors sold a net 117.3 billion won.
Most of the top market capitalization stocks showed gains. Samsung Electronics was trading at 227,000 won, up 3.42%, while SK Hynix rose 5.22% to 1,471,000 won. Other gainers included Samsung Electronics preferred shares (up 3.79%), SK Square (up 6.34%), and Samsung Electro-Mechanics (up 5.07%). However, LG Energy Solution fell 2.07%, and Samsung Biologics dropped 1.72%.
The KOSDAQ index also rose, trading at 716.13, up 11.74 points (1.67%) at the same time.
In the KOSDAQ market, individual investors bought a net 62.2 billion won, while foreign and institutional investors sold a net 26.6 billion won and 19.3 billion won, respectively.
Among the top KOSDAQ stocks, EcoPro (up 3.28%), EcoPro BM (up 2.74%), JUSUNG Engineering (up 4.71%), Rainbow Robotics (up 2.59%), and Simtech (up 10.51%) saw increases. Conversely, Alteogen fell 2.58%, and HLB dropped 16.34%.
The domestic market's rebound is attributed to the strong performance of U.S. tech stocks overnight. On November 3, the Nasdaq Composite rose 0.83%, and the S&P 500 increased by 0.36%. Major semiconductor stocks, including NVIDIA (up 2.29%), Micron Technology (up 2.58%), and AMD (up 3.65%), all posted gains.
Notably, AMD and Super Micro Computer reported better-than-expected earnings and guidance, alleviating some concerns about the profitability of AI investments. However, there remains potential for increased volatility in the domestic market depending on the results of the U.S. midterm elections and movements in Treasury yields.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to rebound due to the strong performance of major AI stocks and increased buying interest following the recent sharp decline, despite concerns over rising U.S. interest rates related to uncertainties surrounding the U.S.-Iran negotiations and the midterm elections. The results from AMD and Super Micro Computer will contribute to improving investor sentiment in domestic AI-related stocks as we pass the peak of the AI investment cycle and address profitability concerns."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.