[DiaryPoint | Reporter Kim Jeong-hun] The KOSPI closed at 5,859.08 on Nov. 2, up 2.24%, recovering after a steep drop in the previous session as institutional investors stepped in. The index ranged from an intraday low of 5,616.50 to a high of 5,910.83. The KOSDAQ also rose 9.98 points to 734.36, reclaiming the 730 level.
Samsung Electronics finished up 1.78% at 229,000 won, while SK Hynix gained 3.81% to 1.472 million won. Advancers on the KOSPI outnumbered decliners, 652 to 229, suggesting the rebound spread beyond the largest semiconductor stocks.
Institutional buying and bargain hunting after the selloff provide support
In the main KOSPI market, institutions were net buyers of more than 1.2 trillion won, and other corporations bought a net 488 billion won. Retail investors and foreign investors were net sellers of about 1.3 trillion won and 374 billion won, respectively. With buying concentrated among institutions, flows in the next session will be important even as the index rises.
The market opened lower after a sharp decline in U.S. semiconductor stocks but turned higher during the morning. Bargain hunting followed a drop of more than 3% in the KOSPI on Oct. 30, the prior trading day, while expectations for the domestic semiconductor industry and earnings helped sentiment, analysts said. In the United States, Intel shares had plunged after the company cut its fourth-quarter revenue outlook, citing weaker PC demand.
One day of gains is not enough to declare the downturn over
Investors can start by checking whether institutional buying continues in the next session and whether foreign selling eases. The performance of U.S. chip stocks and the won-dollar exchange rate could also influence sentiment toward Korea’s large exporters. Rather than reading a single day’s gain as a trend reversal, investors should watch whether market breadth and trading activity continue to support the advance.
An index rebound does not translate into gains for every stock. Because the KOSPI is influenced by the share prices of companies with large market capitalizations, individual holdings and sectors can fall even when the index rises. Advancers outnumbered decliners on Nov. 2, but it remains to be seen whether that breadth will persist in the next session.