Kospi Ends Up 0.62% at 7,291.91 After Wild Swings as Retail Investors Sell W2.07 Trillion

Rebounds after four-session slide following sharp drop

Jumps more than 4% intraday to retake 7,500

Foreign investors net buyers for second straight session

Middle East conflict worries pare gains

South Korea’s Kospi ended higher at the 7,290 level on July 9 after a day of sharp volatility. Bargain buying in semiconductor stocks, which had plunged a day earlier, sent the index up more than 4% intraday. It later surrendered much of the advance on renewed concerns over conflict in the Middle East and volatile trading flows.

The Kospi rose 45.12 points, or 0.62%, to 7,291.91, rebounding after four sessions of losses. The benchmark opened 3.31% higher and climbed more than 4% early in the session. It turned negative around 11:43 a.m. and at one point fell more than 2%, highlighting the market’s extreme swings.

Renewed worries over conflict in the Middle East were seen as a drag on sentiment the previous day. Those concerns persisted on July 9 after reports said the US military had carried out additional airstrikes targeting Iranian military facilities.

On the Kospi, foreign investors bought a net W306.7 billion and institutions purchased a net W1.8234 trillion. Foreigners were net buyers for a second straight trading day. Retail investors alone sold a net W2.0708 trillion.

Among the 10 largest Kospi stocks by market capitalization, SK Hynix rose 5.3%, SK Square gained 4.49%, Samsung Electro-Mechanics added 0.95%, KB Financial Group rose 0.23% and Samsung Electronics edged up 0.18%. Samsung Life Insurance fell 5.78%, Samsung C&T dropped 4.18%, Hyundai Motor lost 3.68%, Samsung Biologics declined 2.79% and LG Energy Solution slipped 0.63%.

The Kosdaq rose 9 points, or 1.15%, to 794. The index opened 1.02% higher and climbed more than 4% during the session, briefly topping 810, before paring gains in afternoon trading.

On the Kosdaq, foreign investors bought a net W46.7 billion and institutions purchased a net W319.9 billion, while retail investors sold a net W359.3 billion.

Among the 10 largest Kosdaq stocks by market capitalization, Jusung Engineering jumped 11.5%, HLB gained 4.19%, Wonik IPS rose 2.14%, Samchundang Pharm advanced 2.06%, EcoPro added 1.79%, LEENO Industrial climbed 1.16%, Rainbow Robotics rose 0.58% and Kolon TissueGene gained 0.34%. Alteogen fell 4.31% and EcoPro BM slipped 0.98%.

Ko Jeong-sam, Hankyung.com reporter, jsk@hankyung.com