On the 14th, the KOSPI is rebounding with a rise of over 100 points, driven by bargain hunting. The previous day saw the KOSPI market experience a sell-side sidecar (futures market circuit breaker), with intraday trading falling below the 6,000 level and triggering a sharp decline. However, on this day, buying by foreign investors and institutional investors is pushing the index to attempt to settle above the 6,100 line.
As of 9:23 a.m. on the 14th, the KOSPI stood at 6,137.08, up 101.73 points (1.69%) from the previous trading day.
Overnight in New York, tech stocks continued to struggle amid news of new products from Chinese memory semiconductor companies, and bank shares fell despite strong earnings reports. However, a senior Federal Reserve System (Fed) official expressed a cautious stance on additional base rate hikes next year, narrowing the stock market’s intraday losses.
On the 13th (local time), the S&P 500 index on the New York Stock Exchange closed at 7,805.45, down 1.79 points (0.02%) from the previous close. The NASDAQ Composite Index ended trading at 27,204.38, a drop of 41.52 points (0.15%). The Dow Jones Industrial Average recorded 41,670.10, down 180.45 points (0.35%) from the previous close.
John Williams, President of the New York Federal Reserve Bank, stated in an interview with Bloomberg on the same day that while one additional rate hike this year may be appropriate, there is currently no basis to suggest a need for further increases next year. This remark by President Williams was interpreted as a more dovish view compared to interest rate futures market expectations of one additional hike in December this year and two more next year.
Han Ji-young, a researcher at Kiwoom Securities, said, “The domestic stock market is expected to attempt a rebound, driven by wait-and-see sentiment ahead of the September consumer price index (CPI), semiconductor noise from China, narrowing intraday losses in U.S. stocks amid dovish remarks from Federal Reserve officials, and inflows of bargain hunting following the KOSPI’s consecutive sharp declines over the past five trading days.”
The researcher forecast a high probability of a rebound characterized by a correction of excessive declines, emphasizing the possibility of medium-term index recovery. She advised an investment strategy of maintaining existing positions or expanding them through split purchases. She explained, “Consecutive sharp drops of more than 10% have historically been followed by relatively strong medium-term rebounds.” She added, “To ensure the continuity of the rebound, restoring confidence in medium- to long-term earnings is necessary. Since October, the KOSPI’s operating profit consensus estimate for this year has been revised downward, while consensus estimates for 2027–2028 are actually being revised upward.”
On the KOSPI market on the 14th (based on the combined Korea Exchange and Nexttrade criteria), foreign investors and institutional investors made net purchases of 47.6 billion won and 14.6 billion won, respectively. Retail investors recorded net sales of 97.1 billion won.
Among KOSPI sectors, electrical/electronics, transportation/warehousing, telecommunications, and metals are up more than 2%. Construction, chemicals, and IT (information and communications) services are rising in the 1st% range. Securities, electric/gas, machinery/equipment, finance, and distribution are trading slightly higher. Pharmaceuticals and insurance are slightly lower.
Among top KOSPI market capitalization stocks, Samsung Electronics and SK Hynix are up in the 3rd% and 2% ranges, respectively. SK Square and Samsung SDI, which have equity and business ties with them, are also rising by more than 2%. LG Energy Solution is likewise up by more than 2%. Hyundai Motor, Samsung Life Insurance, and Samsung C&T are slightly higher, while KB Financial Group is slightly lower. Samsung Biologics is down by more than 1%.
The KOSDAQ index stands at 837.10, up 0.07 points (0.01%) from the previous trading day.
In the KOSDAQ market, retail investors made net purchases of 172.4 billion won. Foreign investors and institutional investors recorded net sales of 143.6 billion won and 27.4 billion won, respectively.
Among KOSDAQ sectors, metals and finance are up in the 2nd% range. Entertainment/culture and transportation equipment/parts are rising by more than 1%. Telecommunications, construction, medical/precision instruments, IT services, textiles/apparel, electrical/electronics, chemicals, and pharmaceuticals are slightly higher. Manufacturing, distribution, and non-metals are slightly lower. Machinery/equipment is down in the 1st% range.
Among top KOSDAQ market capitalization stocks, EcoPro is up by more than 2%. Alteogen and EcoPro BM are slightly higher. Rainbow Robotics and Rino Industrial are slightly lower. Wonik IPS, Iotech, HLB, and Simtech are down in the 2nd% range. Jusung Engineering is falling by more than 4%.
At 9:00 a.m. on the 14th in the Seoul foreign exchange market, the won/dollar exchange rate was trading at 1,341.1 won, down 0.4 won from the previous trading day.
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