The KOSPI surged over 3%, recovering to the 6,740 level, driven by strong foreign and institutional buying. The rise was fueled by robust semiconductor exports in July and expectations of mediation between the U.S. and Iran, with major semiconductor stocks like Samsung Electronics and SK Hynix leading the index's increase. The KOSDAQ also rebounded from an early decline of over 2% to close slightly higher.
On July 21, the KOSPI finished at 6,747.95, up 231.68 points (3.56%) from the previous trading day.
In the securities market, institutions purchased a net 1.39 trillion won, while foreign investors bought a net 295 billion won, contributing to the index's rise. In contrast, individual investors sold a net 1.66 trillion won.
The KOSPI initially fell below 6,500 due to geopolitical uncertainties between the U.S. and Iran but quickly reversed course. The index's gains prompted a temporary trading halt due to increased buying activity.
Major stocks generally showed strong performance. Samsung Electronics closed at 259,000 won, up 6.15%, while SK Hynix rose 4.08% to 1,836,000 won. Other notable gainers included SK Square (up 6.46%), Samsung SDI (up 2.75%), and Samsung Biologics, which rose 3.72%. Hyundai Motor ended the day flat.
The KOSDAQ index closed at 753.34, up 3.70 points (0.49%). After an early drop of over 2%, it recovered and turned positive in the afternoon. In the KOSDAQ market, individual investors bought a net 144.9 billion won, while foreign and institutional investors sold a net 134.3 billion won and 14.4 billion won, respectively.
Most large-cap stocks in the KOSDAQ also saw gains. Alteogen rose 1.30% to 273,000 won, and EcoProBM increased 1.73% to 105,900 won. EcoPro climbed 2.31% to 75,200 won, while Rainbow Robotics surged 9.73% to 411,500 won. However, Peptron and HLB fell by 0.47% and 0.49%, respectively.
The stock market's rebound was influenced by strong semiconductor export figures. South Korea's exports from July 1 to 20 reached $54.9 billion, a 52.3% increase compared to the same period last year. Notably, semiconductor exports surged 180.6% to $22.1 billion, driving the overall export growth. This solid export performance is seen as boosting expectations for the semiconductor sector's earnings and restoring investor sentiment.
Easing concerns over escalation between the U.S. and Iran also encouraged a preference for riskier assets. Although military tensions persist, mediation proposals from countries like Pakistan and Qatar have somewhat alleviated fears of further escalation.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The domestic market saw an influx of bargain buying centered on the semiconductor sector, while mediation efforts by Pakistan and Qatar have strengthened the preference for risk assets. The strong semiconductor export figures also supported earnings momentum, contributing to upward pressure on stock prices."
He added, "In the U.S. market, there was a rebound in semiconductor stocks that had recently declined, and positive investment opinions from global investment banks regarding the memory sector also supported investor sentiment. The net buying by foreign and institutional investors helped spread the bullish trend across the sector."
* This article has been translated by AI.
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