Korean stocks surged on July 15, with the KOSPI index jumping 6.24% to close at 7284.41, recovering the 7200 level after a 427.58-point gain. The rally was driven by strong foreign and institutional buying totaling 3.13 trillion won combined, following positive signals from declining US inflation and a technology stock rally that boosted SK Hynix's American Depositary Receipt by 27.29% to $193.92 in its third trading day on NASDAQ. The sharp opening triggered a buy-side circuit breaker—the 18th activation in the KOSPI market this year—as program buy orders were temporarily suspended due to rapid futures price increases.
KOSPI Recovers 7200 Level with Circuit Breaker Activation
The KOSPI index opened 226.08 points (3.30%) higher at 7082.91 and extended gains throughout the session to close at 7284.41, marking a 427.58-point increase. Shortly after market open, a buy-side circuit breaker was triggered as KOSPI futures prices surged rapidly, temporarily halting the execution of program buy orders. This marked the 18th buy-side circuit breaker activation in the KOSPI market this year.
Foreign and Institutional Investors Drive 3.13 Trillion Won Net Buying
Foreign investors purchased a net 2.6763 trillion won worth of shares in the main market, while institutional investors added 455.4 billion won in net buying. Individual investors, who had supported the market during previous declines, sold a net 3.1479 trillion won worth of shares to realize profits. The combined foreign and institutional buying of 3.13 trillion won provided strong upward momentum for the index.
SK Hynix and Samsung Electronics Lead Technology Stock Gains
SK Hynix closed 8.83% higher at 2.082 million won, adding 169,000 won from the previous trading day. The stock's rally followed its American Depositary Receipt's 27.29% surge to $193.92 on NASDAQ in its third trading day. Global investment bank Barclays set a target price of $330 for SK Hynix ADR, citing continued memory semiconductor supply shortages. Samsung Electronics rose 6.27% to close at 279,500 won, gaining 16,500 won. Samsung Electro-Mechanics, a key component in the semiconductor value chain, jumped 12.14%, while SK Square, considered an indirect beneficiary of SK Hynix, surged 16.13%.
US June CPI Data Shows 3.5% Year-Over-Year Increase
The US Department of Labor reported that the June Consumer Price Index rose 3.5% compared to the same month last year, falling below the market forecast of 3.8% and the previous month's reading of 4.2%. The lower-than-expected inflation reading influenced the Korean market's upward movement.
KOSDAQ Index Closes 5.80% Higher at 829.44
The KOSDAQ market also triggered a buy-side circuit breaker 17 minutes after opening and maintained strong momentum throughout the session. The index opened 21.73 points (2.77%) higher at 805.71 and closed at 829.44, up 45.46 points (5.80%). In the KOSDAQ market, institutional investors net purchased 107 billion won and foreign investors bought 44.6 billion won, while individuals net sold 162.5 billion won.
FAQ
What happened to Korean stocks on July 15?
The KOSPI index surged 6.24% (427.58 points) to close at 7284.41 on July 15, while the KOSDAQ index rose 5.80% (45.46 points) to 829.44. Both markets triggered buy-side circuit breakers shortly after opening due to rapid price increases.
How much did foreign investors buy in Korean stocks on July 15?
Foreign investors purchased a net 2.6763 trillion won worth of shares in the main KOSPI market on July 15, while institutional investors added 455.4 billion won in net buying. Individual investors sold a net 3.1479 trillion won worth of shares.
