The KOSPI opened higher, buoyed by a rebound in the U.S. stock market and an influx of bargain buying. Following a sharp decline the previous day, major semiconductor stocks are showing signs of recovery, contributing to gains in both the KOSPI and KOSDAQ.
As of 9:18 a.m. on October 16, the KOSPI had risen by 93.64 points (1.69%) to reach 5,647.86.
In the securities market, individual and institutional investors have net bought 122.2 billion won and 64.2 billion won, respectively, while foreign investors have net sold 210.1 billion won.
Most of the top stocks by market capitalization on the KOSPI are trending upward. Samsung Electronics is trading at 214,500 won, up 2.14% from the previous day, while SK Hynix has increased by 0.71% to 1,271,000 won. Other gainers include Samsung Electronics preferred shares (3.33%), Samsung Electro-Mechanics (1.81%), Hyundai Motor (2.79%), KB Financial (4.91%), and Samsung Life Insurance (4.82%). In contrast, LG Energy Solution remains flat.
At the same time, in the KOSDAQ market, individual investors have net bought 95.8 billion won, while foreign and institutional investors have net sold 95.3 billion won and 5 billion won, respectively. Stocks such as EcoPro (-0.25%), EcoPro BM (-1.23%), and HLB (-1.10%) are declining, while Alteogen (3.40%), JUSUNG Engineering (1.71%), IOTech (2.72%), Rino Technology (2.23%), and Samchundang Pharmaceutical (2.17%) are on the rise.
All three major U.S. stock indices closed higher overnight. The Dow Jones Industrial Average rose by 1.08%, the S&P 500 increased by 0.33%, and the Nasdaq Composite gained 0.08%.
Despite the U.S. Producer Price Index (PPI) exceeding market expectations, a decline in Treasury yields and easing credit risk concerns for AI-related companies have positively influenced investor sentiment. KOSPI night futures also rose by about 3.9%, heightening expectations for a rebound in the domestic market.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Considering the reduced losses in U.S. semiconductor stocks, the strength of KOSPI night futures, and the influx of bargain buying due to excessive selling, the domestic market is expected to attempt a technical rebound."
She added, "The recent seven consecutive days of sharp declines are historically unusual, and there is a growing expectation for a technical correction rather than further downside risk. However, it is essential to remain cautious about the potential for additional declines due to credit leverage liquidation and deteriorating investor sentiment."
Han also noted, "In the worst-case scenario, it may be necessary to set the KOSPI's support level at 5,100, corresponding to a price-to-book ratio (PBR) of 1.0. Monitoring corporate earnings during the third-quarter earnings season and the stabilization of AI-related stocks will be crucial for recovering the recent losses."
* This article has been translated by AI.
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