Kospi Opens Nearly 4% Higher, Triggers Buy Sidecar as Samsung Electronics Reclaims 300,000 Won
Summary
- The Kospi rebounded in early trading with a nearly 4%% gain and a buy sidecar trigger, as retail investors led the move with 471.3 billion won in net buying.
- Semiconductor shares including Samsung Electronics, SK Hynix, and Samsung Electro-Mechanics advanced, helping Samsung Electronics and SK Hynix reclaim the 300,000 won and 2 million won levels, while Samsung Electro-Mechanics got a boost after being labeled a leading artificial intelligence (AI) component stock and receiving a target-price increase to 2.3 million won.
- On the Kosdaq, retail investors were also net buyers as semiconductor-related shares including Jusung Engineering, Leeno Industrial, and Wonik IPS surged, while the won-dollar exchange rate stood at 1,529.5 won.
Forecast Trend Report by Period
Retail Buying Drives Rebound as Chip Stocks Lead
South Korea’s Kospi rose nearly 4% in early trading on June 9, recouping about half of the previous session’s 8.29% slump. Easing military tensions in the Middle East and a sharp overnight rebound in US semiconductor shares appeared to lift sentiment.
As of 9:05 a.m., the Kospi was up 297.77 points, or 3.98%, at 7,782.18. At about 9:12 a.m., the exchange triggered a buy sidecar, temporarily halting the validity of program buy orders.
Retail investors drove the rebound, buying a net 471.3 billion won worth of shares on the Kospi. Foreign and institutional investors were net sellers of 286.3 billion won and 219.0 billion won, respectively.
Most large-cap stocks traded higher.
Samsung Electronics and SK Hynix rose 4.57% and 6.91%, respectively, reclaiming the 300,000 won and 2 million won levels. The rebound still lagged Micron Technology’s 9.87% jump in New York overnight. SK Square also gained 7.16%.
Samsung Electro-Mechanics advanced 9.74%. Investor sentiment improved after iM Securities, before the market open, called the company a leading artificial intelligence component stock that could benefit from both multilayer ceramic capacitors, or MLCCs, and flip-chip ball grid arrays, or FC-BGAs, and raised its target price to 2.3 million won.
Hyundai Motor added 2.97%, while Kia climbed 5.09%.
HD Hyundai Heavy Industries, by contrast, fell 1.13%.
The Kosdaq rose 27.63 points, or 3.03%, to 939.02. Retail investors were net buyers of 37.8 billion won worth of shares, while foreign and institutional investors sold a net 23.8 billion won and 16.9 billion won, respectively.
Most of the Kosdaq’s largest stocks also moved higher.
Jusung Engineering and Leeno Industrial jumped 8.26% and 7.76%, respectively. Wonik IPS gained 7.15%.
Biotech shares posted a weaker rebound. Alteogen rose 1.04%, Kolon TissueGene gained 2.24%, and HLB added 0.93%. Samchundang Pharm fell 1.88%.
In Seoul’s foreign-exchange market, the won traded at 1,529.5 per dollar, up 3 won, or 0.2%, from the previous session.
US stocks closed mixed overnight. Semiconductor shares rebounded sharply, but the Dow Jones Industrial Average edged lower. On June 8, the Dow fell 80.77 points, or 0.16%, to 50,786.01, the S&P 500 rose 21.99 points, or 0.30%, to 7,405.73, and the Nasdaq Composite gained 220.23 points, or 0.86%, to 25,929.66.
Han Gyeong-u, Hankyung.com reporter case@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
