[Opening Market] KOSPI Regains 6,100 As Foreign Investors Turn to Buying

On the morning of Oct. 14, the won-dollar exchange rate, KOSPI and KOSDAQ indices are displayed on the electronic board at the dealing room of Hana Bank headquarters in Jung-gu, Seoul. (Yonhap) On the morning of Oct. 14, the domestic stock market broke out of a steep decline that had continued for 5 consecutive trading days due to unfavorable factors such as the semiconductor shock from China on the previous day, showing a path to a long-awaited rebound. The index, which had been driven to the brink of collapsing below the 6,000 mark during intraday trading on the previous day, opened the market with a relief rally right after the opening on this day as buying sentiment revived, centered around large-cap semiconductor stocks. The KOSPI index started at 6062.08, up 26.73 points (0.44%) from the previous trading day, and then expanded its gains to reach the 6,180 mark at one point during intraday trading. KOSDAQ completely recovered its losses compared to the previous trading day and is repeatedly showing stable fluctuations around the flatline amid the buying participation of retail investors. The KOSDAQ index opened at 835.90, down 1.13 points (0.14%), and repeatedly alternated between upward and downward trends in the early trading session, currently remaining in the flatline. Foreign Investors Turn to Net Buying, Driving the Index Foreign investors, who led the sharp drop in the index by dumping a massive bomb of sell orders on the previous trading day, played the role of the key contributor to driving the index by turning to a net buying trend in the early trading session on this day. Foreign investors broke away from the massive “sell” stance of the previous day and led the recovery of the 6,100 mark by turning to a net buying position centered around major blue-chip semiconductor stocks in the KOSPI market in the early morning trading session. Coupled with the shift to buying by foreign investors, institutional investors also added strength to the supply and demand, while retail investors continued a real-time wait-and-see market trend amid fluctuations around the flatline, centered on the KOSDAQ market and others. As of 9:45, in the securities market, foreign investors halted the net selling trend that had continued for 6 trading days and are showing a buying dominance of 6 billion won (about $4.47 million). Institutional investors are also net buying 21.4 billion won. Retail investors are alone net selling 115.6 billion won. In the KOSDAQ market, retail investors are alone net buying 205.3 billion won, driving the index. Foreign and institutional investors are net selling 151.9 billion won and 54.7 billion won, respectively. Semiconductor Twin Pillars, Including Samsung Electronics and SK Hynix, Show Rebound Trend Large-cap semiconductor stocks, which severely froze investor sentiment on the previous day, appear to be riding a rebound trend side by side as low-end buying flows in on this morning. Samsung Electronics added strength to defending the index, showing an upward trend of around 1% in the early trading session due to the inflow of rebound buying following the sharp drop on the previous day. SK hynix is breaking away from the shock of the previous day, recording an upward trend in the 1% to 2% range in the early trading session and showing a resilient recovery attempt in the mid-to-late 1,400,000 won range. Top-tier KOSPI index stocks are also showing an overall pattern of taking a breather and rebounding as low-end buying flows in to recover the losses from the previous day. In the KOSDAQ market, an individual rebound market trend by stock is unfolding, breaking away from the plunge phase of the previous day, with some top market capitalization stocks in secondary batteries and pharmaceuticals and biotechnology, such as Ecopro, recording a slight upward trend. Won-Dollar Exchange Rate Starts with 1,341.1 Won, Down Slightly (Strong Won) Compared to the Previous Closing Price As the stock market enters a rebound phase for the first time in 5 trading days, the anxious sentiment in the foreign exchange market is also showing a noticeably calmed trend. In the Seoul foreign exchange market on this day, the won-dollar exchange rate at 9:00 a.m., which slightly dropped (strong won) compared to the previous trading day’s closing price, started at 1341.1 won and appears to be finding stability. As concerns about the outflow of foreign funds in the stock market are easing and the exchange rate is stabilizing downward, the domestic financial market is generally gaining breathing room. Today, the domestic stock market successfully rebounded to recover the 6,100 mark, supported by low-end buying and the buying shift of foreign investors amid the external unfavorable factors and semiconductor noise that had weighed down the market for the past 5 trading days. However, the securities industry advises that since it has a strong nature of a technical rebound, there is a need to more calmly confirm the future earnings outlook of global semiconductor companies and the continuation of foreign supply and demand.