KOSPI rises 2.24% on strong chip exports and dip-buying; construction and transport sectors show strength.
KOSDAQ rebounds 1.38% as merger, tender offer, and low-PBR related stocks jump.
South Korean equity markets finished higher across the board on Tuesday. Despite lingering concerns over the profitability and sustainability of capital expenditure in the artificial intelligence (AI) sector, investor sentiment was bolstered by robust domestic semiconductor exports and easing valuation burdens following recent pullbacks. Propelled by massive net buying from institutional investors, the KOSPI recaptured the 5,800 threshold, while the KOSDAQ rebounded after three sessions of declines.
According to the Korea Exchange (KRX), the KOSPI closed up 128.34 points, or 2.24%, at 5,859.08. The tech-heavy KOSDAQ finished 9.98 points, or 1.38%, higher at 734.36. In the onshore foreign exchange market, the won-dollar closed daytime trading at 1,343.8 won, up 9.5 won from the previous session.
The KOSPI opened lower amid concerns over profitability and investment sustainability across the AI industry. However, the benchmark turned positive as institutional bargain hunting flowed primarily into electrical and electronics shares, driven by strong local semiconductor exports and reduced valuation pressures.
By sector, construction climbed 5.8%, transportation and warehousing advanced 5.3%, transport equipment and parts rose 3.7%, and machinery and equipment gained 3.1%. Large-cap stocks grew 2.3%, mid-caps added 2.0%, and small-caps rose 1.7%.
In terms of supply and demand, institutional investors net-bought 1.2331 trillion won, whereas foreign and retail investors net-sold 369.7 billion won and 1.3466 trillion won, respectively. Foreign capital targeted electrical and electronics (-319 billion won), finance (-88.7 billion won), and distribution (-28.8 billion won) for net selling.
The KOSDAQ opened weak due to cooling investor sentiment following losses in U.S. tech shares late last week, but subsequently rebounded, led by machinery, equipment, and metal sectors. Sector-wise, metals advanced 4.1%, transportation and warehousing rose 3.1%, and chemicals gained 2.6%. Institutions net-bought 62.3 billion won, while foreigners and individuals net-sold 32.1 billion won and 26.1 billion won, respectively.
Mergers, Tender Offers, and Low-PBR Stocks Surge
Sempio (007540) and Sempio Foods (248170) hit their daily upper limits, surging 29.91% and 29.86% respectively, following decisions to merge their holding companies.
KISCO Holdings (001940) rose 19.92% on plans to make its subsidiary, Korea Steel, a wholly-owned unit. Korea Steel (104700) also jumped 23.68% on news of a tender offer to transition into an unlisted firm.
Hanjin KAL (180640) gained 8.80% amid speculation that the Hoban Group could secure its position as the largest shareholder.
The Korea Exchange's release of a roster of low price-to-book ratio (PBR) companies also fueled gains in related equities. Hyundai Steel (004020) advanced 11.61%, and Mobase (101330) rose 7.97%.
Seohee Construction (035890) climbed 5.72% after announcing a corporate value-up plan that included expanded dividends and the full cancellation of treasury shares.
Shipbuilders and Power Equipment Rally on Order and Earnings Optimism
Shipbuilding stocks advanced in tandem on expectations of growing global vessel orders and improving industry conditions. HD Hyundai Marine Engine (071970) surged 16.74%, Hyundai Hims (460930) gained 11.03%, and Hanwha Engine (082740) added 9.18%.
Hanwha Ocean (042660) rose 9.80% on news of its successful localization of a horizontal launching system, a core submarine component.
Hyosung Heavy Industries (298040) jumped 13.32% on expectations of expanding North American ultra-high-voltage power equipment orders and stronger fourth-quarter earnings. CS Wind (112610) gained 7.31% following an announcement that it signed a wind tower supply contract worth approximately 83.1 billion won with Germany's Siemens Gamesa for the UK market.
GS Engineering & Construction (006360) climbed 10.00% on prospects of improved profitability in its architecture and housing divisions alongside next year's earnings recovery, while P&S Robotics (460940) hit the daily ceiling with a 29.86% surge on expectations of expanding its rehabilitation robotics business.
Youngkwang (359410), which debuted on the KOSDAQ on this day, finished 26.47% higher than its initial public offering (IPO) price of 17,000 won. The company, a manufacturer of ship engine room modules and plant equipment, benefited from heightened growth expectations driven by improving industry conditions and expanded production facilities.
Conversely, HL Mando (204320) fell 5.53% due to lackluster third-quarter earnings. SOOP (067160) plunged 11.32% after reporting a third-quarter operating profit of 14.5 billion won, down 59.9% year-on-year and missing market expectations.
Kiwoom Securities (039490) also declined 6.38% on weak third-quarter results.
