The KOSPI index recovered to the 6700 level on the morning of the 21st, rising 3.19% to 6723 as of 10:35 AM, driven by a shift in foreign investor sentiment to net buying. After displaying selling dominance at the market open, foreign investors turned to net purchases of approximately 290 billion won on the securities market (combined Korea Exchange and Nextrade figures), while institutional investors continued net buying of around 220 billion won. Individual investors recorded net sales of approximately 550 billion won. The recovery followed bargain hunting after 'Black Monday' on the 20th and was supported by a modest rebound in US semiconductor stocks overnight.
Foreign and Institutional Investors Drive KOSPI Recovery
According to the Korea Exchange, foreign investors reversed their initial selling stance and became net buyers on the securities market. The combined net buying from foreign and institutional investors totaled approximately 510 billion won during the morning session, offsetting individual investor net sales of around 550 billion won. The shift in foreign investor behavior provided key support for the index's recovery from the 6500 level seen at the market open.
Samsung Electronics and SK Hynix Lead Semiconductor Stock Rally
Samsung Electronics and SK Hynix, the top two semiconductor stocks by market capitalization, led the market's upward movement. Samsung Electronics rose 5.84% to 258,250 won, while SK Hynix climbed 3.83% to 1,831,500 won as of the morning session on the 21st. Samsung C&T advanced over 6%, Hanwha Aerospace gained over 4%, and SK Square and Samsung Biologics each rose over 3%. The KOSDAQ index declined 0.50% to 745.90.
US Semiconductor Index Rebounds Overnight
The Philadelphia Semiconductor Index rose 0.60% overnight despite the three major US indices closing lower due to renewed Middle East geopolitical risks. Bargain hunting flowed into the semiconductor sector, with AMD up 1.58%, Broadcom up 1.98%, Micron up 1.94%, Intel up 2.13%, and SanDisk up 2.67%. The modest rebound in US semiconductor stocks positively influenced investor sentiment in the Korean market.
Kiwoom Securities Analyst Recommends Semiconductor Stock Accumulation
Han Ji-young, a researcher at Kiwoom Securities, stated that buying interest is flowing into leading sectors including semiconductors due to excessive declines, despite US-Iran geopolitical uncertainties. Han explained that foreign investor supply conditions are expected to improve due to the rebound in US semiconductor stocks and easing won-dollar exchange rate pressure. Han described the current point as a period where investors can expect a rebound after bottoming out rather than further level-down, considering valuation, earnings, and supply factors. Han recommended prioritizing a strategy of gradually increasing positions through split purchases centered on semiconductors, which are leading stocks that experienced excessive recent declines.
FAQ
What caused the KOSPI stocks to recover to the 6700 level on the 21st?
The KOSPI index rose 3.19% to 6723 as of 10:35 AM on the 21st, driven by foreign investors shifting to net buying of approximately 290 billion won and institutional investors continuing net purchases of around 220 billion won. The recovery was supported by bargain hunting after 'Black Monday' on the 20th and a modest rebound in US semiconductor stocks overnight.
How did Samsung Electronics and SK Hynix perform during the morning session on the 21st?
Samsung Electronics rose 5.84% to 258,250 won, while SK Hynix climbed 3.83% to 1,831,500 won as of the morning session on the 21st. The two semiconductor stocks, which hold the top market capitalizations, led the market's upward movement.
What did the Kiwoom Securities analyst recommend regarding semiconductor stocks?
Han Ji-young from Kiwoom Securities recommended prioritizing a strategy of gradually increasing positions through split purchases centered on semiconductors, describing the current point as a period where investors can expect a rebound after bottoming out rather than further declines, considering valuation, earnings, and supply factors.
