Buying Spree in Electrical and Electronics Sectors Drives KOSPI to 5239.13 and KOSDAQ to 667.61
NHN Hits Daily Limit; Korean Air Climbs 11%; SK hynix Rebounds 6.34%
Domestic markets staged a sharp rebound on the 10th, buoyed by the strength of U.S. technology stocks and a decline in international oil prices. With foreign and institutional investors engaging in net buying on the KOSPI, capital flowed into sectors that had recently suffered significant losses, such as electrical/electronics and machinery/equipment. Both the KOSPI and KOSDAQ indices rose for the first time in four trading sessions.
According to the Korea Exchange, the KOSPI closed at 5239.13, up 220.28 points (4.39%). The KOSDAQ finished at 667.61, rising 28.64 points (4.48%). The won-dollar exchange rate closed at 1,337.5 won, down 9.6 won from the previous trading day.
The KOSPI opened higher following the positive momentum from U.S. tech stocks and lower oil prices. As the won strengthened during the session, foreign and institutional buying, particularly in the electrical and electronics sectors, accelerated the index's gains.
Broad-based strength was observed across sectors. Medical and precision instruments rose 8.5%, machinery and equipment 7.7%, construction 7.2%, and electrical and electronics 5.7%. By market capitalization, large-cap stocks rose 4.5%, mid-cap stocks 3.1%, and small-cap stocks 2.4%.
In terms of trading activity, foreign investors net bought 397.2 billion won, while institutions net bought 473.2 billion won. Individual investors net sold 1.3533 trillion won, opting to lock in profits. Foreigners focused their buying on electrical and electronics (219.9 billion won), transportation and warehousing (79.2 billion won), and machinery and equipment (34.7 billion won).
The KOSDAQ also opened higher and climbed over 4% as institutional buying poured in. The financial sector rose 6.8%, machinery and equipment 6.3%, and non-metallic minerals 6.1%. Institutions net bought 214.8 billion won, while foreign and individual investors net sold 146.9 billion won and 56.4 billion won, respectively.
Semiconductor and Aviation Stocks Rally; NHN Hits Upper Limit
NHN hit the daily upper limit, rising 29.87% to 77,400 won, driven by strong third-quarter earnings and expectations for its data center business. The company reported a 112.7% year-on-year increase in consolidated operating profit to 58.8 billion won.
Korean Air closed at 32,400 won, up 11.34%, as investors anticipated reduced cost burdens from the sharp drop in international oil prices. During the session, the stock reached 32,800 won, marking a new 52-week high.
Dongwon Parts finished its first day of trading on the KOSDAQ at 29,550 won, an 11.51% increase from its IPO price of 26,500 won.
Large-cap semiconductor stocks also saw a strong rebound. SK hynix closed at 1,208,000 won, up 6.34%, while Samsung Electronics rose 4.53% to 198,500 won.
Lotte Chilsung and KEPCO KPS Lag Amid Market Surge
Despite the broad market rally, some stocks with poor earnings performance remained weak.
Lotte Chilsung fell 7.63% to 101,700 won due to disappointing third-quarter results. KEPCO KPS closed down 6.84% at 37,450 won following weak earnings and downward revisions to target prices by brokerage firms.
In the foreign exchange market, the won strengthened for the second consecutive day, while international oil prices continued their downward trend. The combination of a U.S. tech rebound, falling oil prices, and a stronger won prompted foreign investors to return to the KOSPI spot market, fueling the significant recovery.
