[Opening Market] KOSPI Tries to Recover After 'Black Thursday'
Entering mid-October on Friday, Oct. 16, after the fierce storm of ‘Black Thursday’ that shook the South Korean stock market on the previous day passed, the domestic stock market initially opened in a phase of attempting a rebound by taking a breather and drawing in low-end buying.According to the K
On Friday, October 16, as the aftermath of 'Black Thursday' subsided, the South Korean KOSPI stock index aimed to rebound, opening at 5,653.99, a 1.80% increase from the previous session. This index strength continued, peaking at 5,662.30 before easing to a 0.65% rise, standing at 5,590.33. The market suffered a decline of over 7% on the preceding day, with circuit breakers deployed in both KOSPI and KOSDAQ, due to the sharp drop from foreign investor exodus.
The KOSPI fell to 5,554.22 after massive foreign selling totaling 3.624 trillion won, representing about 71% of the total net selling volume. The bulk of this foreign selling was concentrated on semiconductor giants Samsung Electronics and SK hynix, amid concerns over funding for AI infrastructure and high interest rates. In response, domestic retail and institutional investors engaged in large-scale low-end buying, collectively purchasing 2.98 trillion won of stocks.
While foreign investors net-sold 217.7 billion won in the KOSDAQ, retail and institutional investors collectively sold 66.7 billion won and 163.2 billion won, respectively, causing market contraction. As of 10:00 a.m., while foreign selling moderated slightly, it still dominated the market with a net sell of 400-500 billion won.
Meanwhile, domestic investors showed a net buying trend of 200 billion won in KOSPI and 300 billion won in KOSDAQ, attempting to stabilize the market. Experts consider the drastic reduction in foreign selling volume to be pivotal in determining whether the domestic market stabilizes in the short term. Major top KOSPI stocks, including semiconductor companies, are attempting to rebound, with Samsung Electronics and SK hynix showing modest gains.
Nonetheless, analysts remain uncertain about the potential for a full market turnaround, given October's cumulative decline exceeding 20%.
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