KOSPI, Semiconductor and 2nd Battery Rally... Recovers to 2400 Level

The KOSPI index recovered to the 2400 level, supported by the strong performance of the semiconductor and secondary battery sectors.

On the 22nd, the KOSPI index closed at 2416.96, up 28.61 points (1.2%) from the previous day. Trading volume reached 492.72 million shares, and trading value recorded 7.7732 trillion won.

On the 16th, the KOSPI index opened at 2357.98, down 21.74 points (0.91%) from the previous trading day, as dealers were busy moving in the Hana Bank dealing room in Jung-gu, Seoul. Photo by Dongju Yoon doso7@

The KOSPI index started higher as market anxiety eased following U.S. Treasury Secretary Janet Yellen's remarks on strengthening deposit protection measures to guard against banking risks. The reduced likelihood of a big rate hike by the Federal Open Market Committee (FOMC) also had a positive effect.

In particular, semiconductor stocks rose as the U.S. semiconductor law's guardrail provisions were assessed to have avoided the worst outcomes for domestic semiconductor companies. Additionally, the K-Chips Act, which expands the semiconductor investment tax credit from the existing 8% to 15%, passed the National Assembly's Budget and Accounts Committee, influencing investor sentiment.

Furthermore, the secondary battery-related sectors gained momentum. Seokhwan Kim, a researcher at Mirae Asset Securities, analyzed, "Domestic secondary battery stocks also rose due to the sharp increase in U.S. Tesla shares," adding, "Moody's upgraded Tesla's investment rating, and positive sales data from the European and Chinese electric vehicle markets were also favorable factors."

By investor type, institutions and foreigners led the market rise with net purchases of 143.7 billion won and 203.2 billion won, respectively, while individuals net sold 347.2 billion won. Program trading saw a net sale of 6 billion won in arbitrage trading and a net purchase of 51 billion won in non-arbitrage trading.

Many sectors showed strength. The electrical and electronics sector rose 2.27%, steel and metals 1.95%, manufacturing 1.53%, services 1.51%, chemicals 1.38%, non-metallic minerals 1.33%, and insurance 0.95%. Conversely, the textile and apparel sector fell 0.61%, paper and wood -0.49%, transportation and warehousing -0.49%, and construction -0.46%.

Most of the top market capitalization stocks were strong. Samsung Electronics rose 1.33%, LG Energy Solution 4.95%, SK Hynix 3.95%, Samsung Biologics 0.12%, Samsung SDI 2.09%, LG Chem 3.84%, and Hyundai Motor 2.56%.

The KOSDAQ index also closed higher, driven by buying from institutions and foreigners. The KOSDAQ index ended at 813.43, up 10.90 points (1.36%) from the previous day.

Trading volume was 1.09684 billion shares, and trading value was 12.424 trillion won. By investor type, institutions and foreigners net purchased 75.3 billion won and 33.8 billion won, respectively, while individuals net sold 74.1 billion won.

Among the top market capitalization stocks, EcoPro BM rose 4.4%, EcoPro 7.86%, Celltrion Healthcare 2.33%, L&F 5.51%, Celltrion Pharm 2.34%, Kakao Games 3.29%, Osstem Implant 0.86%, and Pearl Abyss 5.15%. Conversely, HLB fell 1.84%, and SM also showed a decline of 1.32%.

Meanwhile, in the Seoul foreign exchange market, the won/dollar exchange rate closed at 1307.7 won, down 3.5 won from the previous day.