Declining U.S. bond yields and easing tightening concerns help KOSPI reclaim the 5,668 level
KOSDAQ posts first gain in seven sessions, propelled by biotech, AI, and robotics shares
South Korean stock markets closed higher across the board on Thursday. Prompted by buying interest following the previous session's sell-off, the KOSPI recaptured the 5,600 threshold, while the KOSDAQ rallied more than 4%.
According to the Korea Exchange, the KOSPI finished up 113.83 points, or 2.05%, at 5,668.05. The KOSDAQ advanced 33.96 points, or 4.46%, to close at 794.78. In the interbank foreign exchange market, the won-dollar exchange rate settled down 13.2 won at 1,331.4 won.
The KOSPI opened higher, bolstered by receding credit risk concerns surrounding AI infrastructure firms and declining U.S. Treasury yields. Gains widened during the session as remarks from the U.S. Federal Reserve Chair allayed worries over additional monetary tightening, allowing the index to secure a robust gain of over 2% by the closing bell.
By sector, medical and precision instruments rose 6.1%, pharmaceuticals gained 4.7%, retail advanced 4.3%, and transportation equipment and parts increased 4.2%. Large-cap stocks grew 2.1%, mid-caps 1.2%, and small-caps 1.9%.
In the supply-demand breakdown, foreign investors net-bought 362.5 billion won, whereas institutional and retail investors net-sold 681.2 billion won and 508.3 billion won, respectively. Foreign buying was concentrated in finance (141.4 billion won), transportation equipment and parts (84.8 billion won), and IT services (72.8 billion won).
The KOSDAQ found support in machinery, equipment, electrical, and electronics sectors, buoyed by easing financing concerns for AI companies and lower U.S. yields. Sector-wise, medical and precision instruments climbed 7.0%, non-metallic minerals added 6.3%, and general services advanced 6.1%. Institutional investors net-bought 171.1 billion won, while foreign and retail investors net-sold 91.7 billion won and 92.6 billion won, respectively.
Biotech Shares Rally; AI and Robotics Stocks Surge
LegoChem Biosciences (141080) rose 8.76% on news that the first patient had been dosed in the global phase 1/2 clinical trial of 'LCB02A', its proprietary antibody-drug conjugate (ADC) candidate. L&C Bio (290650) jumped 23.63% after recording a subscription rate of 103.92% among existing shareholders in a 144.7 billion won rights offering.
Dalba Global (483650) gained 8.32% on forecasts of improved profitability driven by advertising cost efficiencies. APR (278470) climbed 9.23% following reports of its plans to expand the supply of skin boosters into Latin America, starting with Chile.
Secondary battery-related shares also traded strong. Sam A Aluminum (006110) moved up 9.57% on expectations of growing demand for energy storage system (ESS) aluminum foil. Cenotech (222420) advanced 10.30% after securing a 12.9 billion won secondary battery additive supply contract, equivalent to 36.18% of its last fiscal year's revenue.
Eco & Dream (101360) hit the daily upward limit, surging 30.00% following the completion of a 35.0 billion won convertible bond payment and plans to scale up precursor shipments next year.
AI infrastructure and robotics stocks also spiked. TS Trillion (317240) hit the daily price ceiling with a 30.00% surge on news of a joint development project for the Cheonan AI data center, worth a total of 2.3 trillion won. Wooriro (046970) climbed 21.96% after signing a 22.8 billion won optical semiconductor supply contract for data centers, representing 53.6% of its previous year's revenue.
Dynamic Solution (290660) rose 17.09% after demonstrating a rehabilitation robotic hand combining brain-computer interfaces (BCI) and AI. RevoSurgical (491000) leaped 28.24% on anticipation of the commercialization of its surgical robot, 'Stark'.
Defense stocks advanced as well amid escalating geopolitical tensions in the Middle East, with Hanwha Aerospace (012450) up 7.77% and Hanwha Systems (272210) up 5.19%.
Poor Earnings and Resumed Trading Trigger Sharp Declines
Korean Air (003490) plummeted 10.53% as market participants zeroed in on a declining operating profit margin driven by heavy jet fuel burdens, overshadowing an increase in third-quarter revenue.
Kukdo Chemical (007690) dropped 11.17% after releasing preliminary earnings showing that its third-quarter operating profit dropped approximately 90% quarter-on-quarter to 4.8 billion won.
Woojin Inc. (457550) plunged 21.23% on its first day of resumed trading after being excluded from substantive reviews for listing eligibility.
