Sector rotation gains traction as rising interest rate momentum eases; KOSPI extends winning streak to two days
KOSDAQ edges down despite strength in semiconductors and secondary batteries; optical communication and refinery shares rally
South Korean equity markets finished mixed on Oct. 2. While the benchmark KOSPI advanced for a second straight session to reclaim the 7,000 threshold, the secondary KOSDAQ retreated after six consecutive sessions of gains.
According to the Korea Exchange (KRX), the KOSPI closed up 32.39 points, or 0.46%, at 7,003.74. Meanwhile, the KOSDAQ dipped 1.00 point, or 0.11%, to finish at 893.29. The won-dollar exchange rate settled down 7.8 won at 1,350.6 won per dollar at the close of daytime trading.
The KOSPI opened lower, pressured by a sharp surge in global sovereign bond yields and rising international oil prices, but later turned positive as the pace of interest rate increases moderated during the session, sparking sector-specific rotation. By sector, chemicals gained 3.3%, metals rose 1.8%, telecommunications climbed 1.3%, and textiles and apparel added 1.0%. Large-cap stocks advanced 0.4%, mid-caps grew 0.9%, and small-caps edged up 0.4%.
In the supply-demand breakdown, institutional investors net-bought 381.3 billion won, whereas foreign and retail investors net-sold 136.8 billion won and 1.7205 trillion won, respectively. Foreign investors offloaded 83.7 billion won in financials, 58.9 billion won in pharmaceuticals, and 48.4 billion won in electrical and electronics.
The KOSDAQ opened strong, led by semiconductor parts and materials and secondary batteries, boosted by overnight strength among U.S. mega-cap tech stocks, but eventually slipped into negative territory amid global rate volatility. By sector, non-metals fell 3.5%, distribution dropped 2.5%, and general services declined 2.2%. Institutional and retail investors net-bought 938 billion won and 81.4 billion won, respectively, while foreign investors net-sold 174.2 billion won.
Optical Communication Shares Rally on AI Data Center Hopes; Refiners Surge
Buying concentrated on optical communication shares as expectations grew that the proliferation of AI data centers would drive demand for high-speed, high-capacity data transmission infrastructure.
Mercury (100590) hit the daily upper limit, surging 29.80%, while TMC (217590) jumped 29.95% on expectations of expanding AI data centers. Other optical communication names followed suit, with Dukwoo Electronics (263600) rising 19.95%, Bitsam Electronics (072950) gaining 12.82%, and OE Solutions (138080) advancing 9.26%.
Refinery stocks also surged sharply. Expectations of improved refining margins grew as international oil prices climbed amid China's halt to refined petroleum product exports and escalating tensions in the Middle East. S-OIL (010950) jumped 11.69%, and SK Innovation (096770) rose 10.32%.
Individual Issues Rally on Treasury Share Buybacks, Nuclear Power, and Space Themes
SJ Group (306040) hit the daily price limit, soaring 29.96% after announcing a 2 billion won treasury stock buyback, while Korea Pharma gained 16.27% on a 1 billion won share acquisition plan.
Lotte Energy Materials (020150) advanced 18.28% on expectations of a recovery in the secondary battery industry. LK Samyang climbed 17.61% amid growing optimism surrounding SpaceX's docking success, and Wonik T&I (136150) rose 14.65% on sustained expectations for expanded U.S. large-scale nuclear power plant construction.
IVisionworks rose 14.03% on its first day of trading resumption. Solid (050890) gained 6.00% on news of a successful demonstration of 5G Non-Terrestrial Network (NTN) data communications using satellite tech, and DuchemBio rose 4.59% on news of its participation in a public bidding for bio-research land in Siheung's Baegot district.
Conversely, Hanchang plummeted 91.07% on the first day of liquidation trading following its delisting. Lotte Tour Development fell 7.40% due to declining casino revenue.
