KOSPI surges 9.6% to the 5,580 level…recovers half of its recent losses in one go

After plunging more than 19% over the past two sessions, the KOSPI index staged a sharp rebound on the 5th, recouping roughly half of its losses at a stroke.

According to the Korea Exchange on the 5th, the KOSPI rose 490.36 points (9.63%) from the previous day to close at 5,583.9.

The day’s KOSPI point gain was the largest on record. The previous record was 338.41 points, set on the 3rd of last month. In percentage terms, it was the second-biggest advance since Oct. 30, 2008 (11.95%).

A day earlier, the KOSPI had tumbled 698.37 points (12.06%) on fears that war between the U.S. and Iran could break out and escalate, marking record point and percentage declines. But after two days of steep selling, sentiment flipped on the day.

In the main bourse, retail investors led buying and absorbed sell orders. Retail investors posted a net buy of 1.7919 trillion won. Institutions and foreigners logged net sells of 1.7141 trillion won and 144.5 billion won, respectively.

All of the top 100 stocks by market cap finished in the red-to-green. Heavyweights Samsung Electronics (11.27%), SK hynix (10.84%), Hyundai Motor (9.38%), LG Energy Solution (6.91%), Samsung Biologics (8.64%), SK Square (11.64%), Hanwha Aerospace (4.38%) and Doosan Enerbility (12.28%) surged.

The KOSDAQ index jumped 137.97 points (14.1%) to finish at 1,116.41. The KOSDAQ’s percentage gain was the largest on record.

Foreigners and institutions posted net buys of 831.9 billion won and 741.7 billion won, respectively, while retail investors alone were net sellers by 1.5530 trillion won.

Among top market-cap names, EcoPro (20.18%), Alteogen (12.05%), EcoPro BM (18%), Samchundang Pharm (23.41%) and Rainbow Robotics (18.89%) posted sharp gains.

Amid the surge, a sidecar—an automatic suspension of program-trading orders—was briefly triggered simultaneously in both the KOSPI and KOSDAQ markets.

In Seoul’s FX market, the won-dollar exchange rate stood at 1,468.1 won per dollar as of 3:30 p.m., down 8.1 won.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com