Investor sentiment recovered amid strong performance in U.S. artificial intelligence (AI) and semiconductor stocks, allowing the KOSPI index to reclaim the 5,700 level in early trading on Wednesday.
As of 9:13 a.m., the KOSPI stood at 5,821.32, up 172.53 points (3.05%) from the previous session. After opening at 5,786.13, up 137.34 points (2.43%), the KOSPI rose by more than 3% during trading and briefly surpassed the 5,800 mark.
By investor type, foreign investors and institutional investors were net buyers, while retail investors moved to take profits. Foreign investors made net purchases of 83.4 billion won, and institutional investors bought a net 22.3 billion won, whereas retail investors sold a net 126.7 billion won.
Riding the strength in U.S. semiconductor stocks, domestic semiconductor leaders are also firm. Samsung Electronics, the top stock by market capitalization, rose in the 2% range, and SK hynix gained in the 3% range. SK Square and Samsung Electro-Mechanics showed strength in the 5th% and 2% ranges, respectively. Among other top market capitalization stocks, Samsung C&T and Hanwha Aerospace rose in the 2% range, while Samsung Life Insurance and Samsung SDI climbed in the 1% range. LG Energy Solution and Samsung Biologics were weak in the 2% range.
By industry/sector, utilities/gas, machinery/equipment, telecommunications, finance, insurance, and construction were strong in the 2% range, while entertainment/culture fell in the 3% range.
Han Ji-young, a researcher at Kiwoom Securities, analyzed, "Despite concerns over rising U.S. interest rates due to wait-and-see sentiment ahead of U.S. midterm elections and noise from U.S.-Iran negotiations, the market is expected to rebound on the strength of major U.S. AI stocks and expanded incentives for bargain hunting following the recent sharp drop in the KOSPI." She added that the earnings released after the New York Stock Exchange close by AMD and Super Micro Computer are also positive material for the domestic stock market. The diagnosis is that investor sentiment for domestic AI-related stocks will also improve, as both companies' results helped alleviate concerns about a peak in the AI investment cycle and profitability instability.
At the same time, the KOSDAQ stood at 716.12, up 11.73 points (1.67%). After opening at 715.74, up 11.35 points (1.61%), buying by retail investors has been flowing in.
Retail investors made net purchases of 61.7 billion won, while foreign investors and institutional investors sold a net 26.1 billion won and 20.3 billion won, respectively.
In the KOSDAQ market, top stocks by market capitalization are generally strong. Excluding Alteogen's weakness in the 4% range and HLB's sharp drop in the 19% range, Simmtech surged in the 11% range, while Jusung Engineering, Iotech, Rino Industrial, ISC, and HPSP were strong in the 3% range. Ecopro and Wonik IPS rose in the 2% range, and Ecopro BM climbed in the 1% range. Rainbow Robotics and Samchundang Pharm showed slight gains.
By industry/sector, metals, non-metals, and machinery/equipment were strong in the 2% range, while construction, distribution, and finance were firm in the 1% range. Conversely, general services and pharmaceuticals were weak in the 2% range, and publishing/media lagged in the 1% range.
In the Seoul foreign exchange market on this day, the won/dollar exchange rate traded at 1,344 won as of 9:00 a.m., up 3 won from the previous session's daily closing price set at 3:30 p.m.
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