Kospi Rebounds Nearly 2%, Reclaims 5,660 as Chip Stocks Jump After Prior-Day Plunge
Summary
- The Kospi rebounded to the 5,660 level on the back of strong earnings from major U.S. technology companies and a decline in international oil prices.
- On the benchmark stock market, net buying by foreign and institutional investors and improving sentiment toward semiconductor shares were leading the index higher.
- In South Korea’s stock market, gains in large-cap semiconductor shares such as Samsung Electronics and SK Hynix, strength in major Kosdaq names, and a decline in the won-dollar exchange rate were unfolding together.
Forecast Trend Report by Period
South Korea’s Kospi rebounded to the 5,660 level, shaking off the previous session’s sharp selloff as strong earnings from major U.S. technology companies and lower oil prices lifted sentiment.
As of 9:04 a.m. on October 21, the Kospi was up 108.98 points, or 1.96%, at 5,661.72. The index had fallen more than 3% the previous day before turning higher a session later.
Foreign and institutional investors were leading the advance. On the benchmark stock market, foreigners were net buyers of 131.1 billion won and institutions bought a net 46.1 billion won. Individuals were net sellers of 201.3 billion won.
The rebound was supported by bargain hunting after the recent slide and easing external uncertainty. Oil prices fell as the prospect of negotiations between the U.S. and Iran came into focus, while long-term bond yields stabilized. Sentiment toward semiconductor shares also improved after Super Micro Computer reported earnings that topped expectations.
Oil prices closed lower overnight after giving up earlier gains. Front-month West Texas Intermediate futures settled at $101.79 a barrel on the New York Mercantile Exchange, down 1.80% from the previous session. Brent crude also neared $112 a barrel intraday, its highest level in five months, before reversing lower to finish at $108.79.
Large-cap semiconductor shares stood out in the domestic market. Samsung Electronics rose 2.96% to 217,750 won, while SK Hynix advanced 3.76% to 1,269,000 won. SK Square also gained 2.56% to 760,000 won. In the biotech sector, Samsung Biologics and Celltrion rose 2.44% and 2.58%, respectively.
The Kosdaq also traded higher. At the same time, the Kosdaq index rose 11.81 points, or 1.51%, to 793.78. Individuals and institutions were net buyers of 19.7 billion won and 11.4 billion won, respectively, while foreigners were net sellers of 29.6 billion won. Among major stocks, Ecopro BM rose 4.28%, Ecopro gained 1.56%, Alteogen climbed 4.11%, Samchundang Pharm added 2.93%, and Jusung Engineering advanced 2.22%. The won was quoted at 1,324.60 per dollar, down 1.40 won from the previous day.
Meanwhile, U.S. stocks ended mixed on October 20 as earnings reports and lower oil prices shaped trading. The Dow Jones Industrial Average rose 1.02% to 52,495.88, while the S&P 500 gained 0.28% to 7,712.57. The tech-heavy Nasdaq Composite slipped 0.02% to 26,424.82 as large technology stocks underperformed.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.