"KOSPI Can't Be Stopped: Leaps Past 5,600, KOSDAQ Also Soars 5%"

Institutions net-buy 1.6 trillion won on KOSPI
Samsung Electronics reclaims the "190,000 won Samsung Electronics" level

On the 19th, the KOSPI surpassed the 5,600 mark for the first time in history, backed by institutional buying. The KOSDAQ also jumped nearly 5% on strong performances by bio and secondary battery stocks.

KOSPI up more than 3%... First-ever breakthrough of the 5,600 level

The KOSPI closed at 5,677.25, up 170.2 points (3.09%) from the previous trading day. Institutions were net buyers of stocks worth 1.6381 trillion won, pushing the index higher. Foreign investors sold 918.0 billion won, and retail investors sold 860.8 billion won.

By sector, securities (12.97%) recorded a particularly sharp rise. The third amendment to the Commercial Act, which includes mandatory cancellation of treasury shares, acted as a driving force and led the rally. Construction (5.97%), paper and wood (5.07%), transportation equipment and components (3.83%), transportation and warehousing (3.76%), electrical and electronics (3.68%), electricity and gas (3.66%), chemicals (3.64%), and manufacturing (3.40%) also gained. In contrast, telecommunications (-1.57%) ended weaker.

After the market close on the 19th, the KOSPI and KOSDAQ indices are displayed on the display board at Shinhan Bank's headquarters in Jung-gu, Seoul. Shinhan Bank

Among large-cap stocks by market capitalization, Mirae Asset Securities surged 14.45%. Hanwha Ocean (8.32%) and HD Hyundai Heavy Industries (5.71%) were also strong. Samsung Electronics jumped 4.86%, reclaiming the so-called "190,000 won Samsung Electronics" level. Samsung Electronics Preferred (4.62%), Hanwha Aerospace (3.98%), Korea Electric Power Corporation (3.85%), Kia (3.60%), Hyundai Motor (2.81%), Celltrion (2.73%), LG Energy Solution (2.15%), Doosan Enerbility (1.76%), Samsung Life Insurance (1.70%), and SK Hynix (1.59%) also advanced. On the other hand, Shinhan Financial Group (-2.15%) and KB Financial Group (-0.83%) finished lower.

Expectations for KOSDAQ activation policies... Bio and secondary battery stocks rise

The KOSDAQ closed sharply higher as expectations continued to build for index activation measures, including the government's announcement of a "plan to accelerate the exit of insolvent companies." The KOSDAQ index finished at 1,160.71, up 54.63 points (4.94%) from the previous trading day. In terms of flows, foreign investors were net buyers of 857.1 billion won, and institutions were net buyers of 1.0480 trillion won. Retail investors sold 1.0830 trillion won.

All of the top 30 KOSDAQ stocks by market capitalization ended higher. Caregen jumped 20.20%, and Samchundang Pharm (19.44%), Peptron (14.75%), EcoPro (14.56%), Classys (11.04%), ISC (10.72%), Voronoi (9.88%), and EcoPro BM (9.13%) also posted big gains. HPSP (8.57%), Alteogen (7.72%), Rainbow Robotics (7.16%), Wonik IPS (7.05%), HLB (5.68%), ABL Bio (5.53%), and Robotis (4.60%) also climbed. However, Padu (-1.15%) ended weaker.

Around 10:40 a.m. that day, a temporary suspension of KOSDAQ program buy orders (a buy-sidecar) was triggered. This was the second activation of a KOSDAQ buy-sidecar this year. The sidecar system is designed to prevent rapid surges or plunges in the futures market from spilling over into the cash market. A KOSDAQ buy-sidecar is activated when the KOSDAQ 150 futures rise at least 6% from their reference price and the KOSDAQ 150 index climbs at least 3% for one minute.

A local citizen is using a securities firm's stock trading app. Reporter Kim Hyunmin

Lee Jaewon, researcher at Shinhan Investment & Securities, said, "As President Lee Jaemyung once again called for 'activation policies,' the previously lagging KOSDAQ turned strong on concurrent net buying by foreign investors and institutions," adding, "However, the number of rising and falling stocks was similar. After the announcement of the reform plan for the delisting system, concerns related to small-cap stocks were reflected in the market."