KOSPI Rebounds in One Day... "Recovers 2500 Level"

The KOSPI and KOSDAQ successfully rebounded just one day after a sharp decline. The KOSPI recovered the 2500 level, while the KOSDAQ is on the verge of reclaiming the 730 level. Both major indices surged sharply, triggering buy-sidecar mechanisms.

As of 9:42 a.m. on the 6th, the KOSPI recorded 2551.51, up 109.96 points (4.50%) from the previous trading day. This rapid rise came immediately after an 8.77% plunge the day before.

On the 5th (local time), the New York stock market experienced its largest drop in two years, but the decline was limited. The Dow Jones Industrial Average, centered on blue-chip stocks, closed at 38,703.27, down 1,033.99 points (2.6%) from the previous day on the New York Stock Exchange (NYSE). The S&P 500, focused on large-cap stocks, fell 160.23 points (3%) to 5,186.33, and the Nasdaq dropped 576.08 points (3.43%) to 16,200.08. The Dow and S&P 500 indices experienced their largest declines in about two years since September 3, 2022.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "In the pre-market, Nvidia’s stock price plunged 15% compared to the previous day, highlighting the significant widening of losses among major companies." However, he added, "After the market opened, the July U.S. Institute for Supply Management (ISM) Services Purchasing Managers' Index (PMI) was released, exceeding market expectations, which somewhat alleviated concerns about economic slowdown."

By investor type, foreigners and institutions were net buyers of 129.9 billion KRW and 213.4 billion KRW, respectively. Conversely, individuals were net sellers of 345.7 billion KRW.

All sectors rose. The medical precision sector increased by 7.09%, while transportation equipment, machinery, and chemicals jumped 6%. Additionally, steel and metals, manufacturing, and transportation and warehousing sectors rose more than 5%.

Among the top market capitalization stocks, Samsung Electronics traded at 74,500 KRW, up 3,100 KRW (4.34%) from the previous day. Hyundai Motor and POSCO Holdings rose more than 6%. LG Energy Solution, Samsung Biologics, and KB Financial also increased by more than 3%.

At the same time, the KOSDAQ recorded 731.10, up 39.82 points (5.76%).

By investor type, foreigners and institutions were net buyers of 134.8 billion KRW and 54.8 billion KRW, respectively. Meanwhile, individuals were net sellers of 183.1 billion KRW.

All sectors are rising. In particular, machinery equipment surged 7.14%, while chemicals, general electrical and electronics, pharmaceuticals, non-metallic minerals, metals, and medical precision sectors rose more than 6%.

Among the top market capitalization stocks, EcoPro BM traded at 174,700 KRW, up 9,800 KRW (5.94%) from the previous day. Silicon투, Alteogen, and Lino Industrial jumped more than 10%, and Hugel rose 9.48%. Additionally, all top market cap stocks including EcoPro, Enchem, and HLB are on the rise.

Meanwhile, buy-sidecar mechanisms were triggered in both the KOSPI and KOSDAQ markets on this day. At 9:06 a.m., a buy-sidecar was activated in the KOSPI market. The KOSPI 200 futures rose 16.75 points (5.06%) from the previous closing price of 330.45 points to 347.20 points and lasted for one minute. At the same time, a buy-sidecar was also triggered in the KOSDAQ. The KOSDAQ 150 futures rose 90.80 points (7.99%) from 1,136.00 points to 1,226.80 points. The KOSDAQ 150 also recorded 1,218.65 points, up 65.16 points (5.64%) from 1,153.49 points, sustaining for one minute. This simultaneous triggering of buy-sidecars in both the KOSPI and KOSDAQ markets occurred for the first time since June 2020.