[KRX deadline | November 2] KOSPI recovers to 5800 level... Institutional net purchase of KRW 1.2331 trillion

KOSPI rises 2.24% due to strong semiconductor exports and low-price purchases... Construction and transportation industries are strong

KOSDAQ also rebounded 1.38%... Stocks related to mergers, tender offers, and low PBR soar

On the 2nd, the domestic stock market KOSPI and KOSDAQ rose together. Despite concerns about the profitability and sustainability of investment in the artificial intelligence (AI) industry, strong domestic semiconductor exports and the easing of valuation burden due to falling stock prices supported investor sentiment. Thanks to large-scale net purchases by institutions, KOSPI recovered to the 5,800 level, and KOSDAQ also rebounded in three trading days.

According to the Korea Exchange, KOSPI ended trading at 5859.08, up 128.34 points (2.24%) from the previous trading day. KOSDAQ closed at 734.36, up 9.98 points (1.38%). The won-dollar exchange rate ended weekly trading at 1343.8 won, up 9.5 won from the previous trading day.

KOSPI started lower due to concerns about the profitability and investment sustainability of the overall AI industry. Afterwards, it turned upward due to the influx of low-price buying by institutions, especially in the electrical and electronics industries, due to the robust export of domestic semiconductors and the easing of valuation burden.

By industry, construction rose 5.8%, transportation and warehouses rose 5.3%, transportation equipment and parts rose 3.7%, and machinery and equipment rose 3.1%. Large-cap stocks rose 2.3%, mid-cap stocks rose 2.0%, and small-cap stocks rose 1.7%.

In terms of supply and demand, institutions net bought 1.2331 trillion won, while foreigners and individuals net sold 369.7 billion won and 1.3466 trillion won, respectively. Foreigners net sold 319 billion won in electrical and electronics, 88.7 billion won in finance, and 28.8 billion won in distribution.

KOSDAQ started off weak at the end of the previous week due to weakened investment sentiment due to the decline in US technology stocks, but rebounded, led by the machinery and equipment and metal industries. By industry, metals rose 4.1%, transportation and warehouses rose 3.1%, and chemicals rose 2.6%. While institutions net bought 62.3 billion won, foreigners and individuals net sold 32.1 billion won and 26.1 billion won, respectively.

Related stocks surge due to mergers, tender offers, and low PBR

Sempio (007540) and Sempio Foods (248170) rose 29.91% and 29.86%, respectively, hitting the upper limit due to the holding company merger decision.

KISCO Holdings (001940) rose 19.92% due to the push for the incorporation of subsidiary Korea Steel into a full subsidiary. Korea Steel (104700) also surged 23.68% on the news of a tender offer for delisting.

Hanjin KAL (180640) rose 8.80% as the possibility of securing Hoban Group's position as the largest shareholder was raised.

The Korea Exchange's disclosure of a list of companies with low PBR (price-to-book ratio) also led to an increase in related stocks. Hyundai Steel (004020) rose 11.61%, and Mobase (101330) rose 7.97%.

Seohee Construction (035890) rose 5.72% as it announced plans to increase corporate value, including increasing dividends and burning all remaining treasury stocks.

Shipbuilding and power equipment strength... Good news on orders and performance also highlighted

Shipbuilding-related stocks rose due to increased global ship orders and expectations of improved industry conditions. HD Hyundai Marine Engine (071970) rose 16.74%, Hyundai Hims (460930) rose 11.03%, and Hanwha Engine (082740) rose 9.18%.

Hanwha Ocean (042660) rose 9.80% on the news of its success in localizing the horizontal launch system, a key equipment for submarines.

Hyosung Heavy Industries (298040) rose 13.32% on expectations of increased orders for ultra-high-voltage power equipment from North America and improved performance in the fourth quarter, and CS Wind (112610) rose 7.31% on the announcement that it had signed a contract to supply wind towers to the UK worth about KRW 83.1 billion with Germany's Siemens Games.

GS Engineering & Construction (006360) rose 10.00% on the prospect of improved profitability in the construction and housing sectors and earnings recovery next year, and P&S Robotics (460940) rose 29.86%, hitting the upper limit on expectations of expansion of the rehabilitation robot business.

Yeonggwang (359410), newly listed on KOSDAQ on this day, rose 26.47% from the public offering price of 17,000 won. Yeonggwang is a company that produces ship engine room modules and plant equipment, and expectations for growth have been highlighted due to improvements in the shipbuilding industry and expansion of production facilities.

On the other hand, HL Mando (204320) fell 5.53% due to poor performance in the third quarter. SOOP (067160) plunged 11.32% in the third quarter as its operating profit fell 59.9% from the previous year to KRW 14.5 billion, falling below market expectations.

Kiwoom Securities (039490) also fell 6.38% due to poor performance in the third quarter.