[Closing Market] KOSPI Rebounds Above 5,600 After Seven-Day Slide
After the unprecedented crash that shook the domestic stock market the previous day, the domestic stock market succeeded in a dramatic rebound on Friday, Oct. 16, as strong bargain hunting flowed in. The domestic stock market, which had plummeted more than 7% with circuit breakers activated in both
The domestic stock market, KOSPI, experienced a remarkable rebound on October 16, 2022, after a seven-day decline. Earlier in the week, the market had plummeted by over 7% with circuit breakers activated in both the KOSPI and KOSDAQ Markets. On this particular day, strong bargain hunting by institutions and foreigners fueled the recovery.
The KOSPI index, which opened at 5,653.99, climbed to 5,668.05, marking a 2.05% increase from the previous trading day. Despite an initial dip to 5,590.33 in early trading, the index regained momentum and closed at 5,660. On the KOSDAQ Market, the index surged 4.46%, rising from 772.17 to 807.54, bolstering investor sentiment. Foreign investors, who had driven the market down by selling a record 3.64 trillion won ($2.73 billion) the day before, reversed their stance and began buying on this day.
As foreign selling subsided and buying increased, the market regained stability and resolved anxiety caused by the short-term plunge. The top semiconductor stocks, which had seen plunges of over 9% and 11% each, also recovered, signaling the end of oversold conditions. This rebound was driven by institutional and foreign buying, with institutions supporting the upper end of the index through significant bargain hunting, particularly in the electrical and electronic sectors and large-cap stocks.
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