[Seoul Market Wrap] KOSPI Surges 3.29% on Foreign Buying Spree; Foreign Investors Net Buy $664.9 Million

Expectations for strong performance of U.S. AI companies and progress in Iranian diplomacy… KOSDAQ also rose 1.38% due to the influx of semiconductor-centered buying... Small- and mid-cap stocks weaken amid strong KOSPI large-cap stocks

On the 21st, the domestic stock market KOSPI and KOSDAQ both rebounded in one day. While the strong performance of U.S. artificial intelligence (AI) companies and expectations of diplomatic progress between the U.S. and Iran improved investor sentiment, foreign buying concentrated on large-cap stocks, including semiconductors, and KOSPI recovered much of the previous day's plunge.

According to the Korea Exchange, KOSPI ended trading at 5735.66, up 182.92 points (3.29%) from the previous trading day. KOSDAQ closed at 792.76, up 10.79 points (1.38%). The won-dollar exchange rate recorded 1,324.5 won, down 1.5 won from the previous day, based on the Korea Exchange stock market brief.

KOSPI started higher on expectations of good performance by U.S. AI companies and easing diplomatic tensions in the Middle East. As concerns about the sustainability of AI investment, which had recently pressured the market, have eased, foreign buying power has flowed, especially in the electrical and electronics industries. KOSPI, which plunged 3.73% the previous day, rebounded more than 3% today and recovered to the 5,700 level.

By industry, medical/precision equipment rose 5.4%, electricity/electronics rose 5.0%, distribution rose 2.2%, and construction rose 2.1%. Large-cap stocks rose 3.6%, while mid-cap stocks fell 0.2% and small-cap stocks fell 0.1%, with the rise centered on large-cap stocks standing out.

In terms of supply and demand, Foreign Investors net bought 664.9 billion won, while institutions and individuals net sold 71.5 billion won and 1.1318 trillion won, respectively. Foreign Investors made a net purchase of KRW 509.3 billion in the electrical and electronics industry, and also purchased KRW 54.7 billion of transportation equipment and parts, and KRW 39.7 billion of chemicals.

KOSDAQ rose due to the strong performance of American AI companies and the influx of low-priced buying following the previous day's plunge. There was an influx of buying power from institutions and individuals, focusing on the electrical/electronics and machinery/equipment industries. By industry, general services rose 3.0%, non-metals rose 2.7%, and machinery and equipment rose 1.9%.

In the KOSDAQ market, Foreign Investors net sold 171.7 billion won, while institutions and individuals net bought 104.7 billion won and 51.6 billion won, respectively.

Semiconductor-centered rebound... Hyungji Elite strong for two days in a row

Buying momentum flowed into the semiconductor industry, which had been weak the previous day due to concerns over AI investment. The electrical and electronics industry rose 5.0% as the strong performance of U.S. AI companies and expectations of solid AI demand improved semiconductor investment sentiment.

Large semiconductor stocks, including Samsung Electronics and SK Hynix, participated in the rebound, and buying trends also flowed into semiconductor equipment stocks. Among the KOSPI foreign net purchases of 664.9 billion won, net purchases in the electrical and electronics industry amounted to 509.3 billion won.

Hyungji Elite (093240) finished trading at 2,140 won, up 11.23% today, following the previous day's upper limit. There continued to be interest in postponing follow-up procedures for delisting due to insufficient market capitalization and resuming trading after stock merger.

Ellis Group, which plummeted on the first day of its KOSDAQ listing the previous day, also showed a rebound on this day.

Hyeongji affiliated company Heebi… After an intraday surge, it turns downward

Hyungji Global (308100) rose to 497 won during the day, but was put on sale in the afternoon and closed at 358 won, down 6.53% from the previous trading day.

Hyungji I&C (011080) also rose to 1,482 won during the day and ended trading at 1,060 won, down 7.02%. Both stocks failed to maintain their surge during the day and turned downward.

Among Hyungji-affiliated stocks that soared on the news of the postponement of follow-up procedures for delisting the previous day, only Hyungji Elite continued its double-digit rise. The stock prices of affiliates that reacted to the same material diverged within a day.

On this day, KOSPI recovered to the 5,700 level thanks to foreign buying, but the upward trend was concentrated in large stocks such as semiconductors. While large-cap stocks rose 3.6%, mid-cap and small-cap stocks fell, and net selling by Foreign Investors continued in the KOSDAQ.