[Closing Market] KOSPI Rebounds Above 5,550 After Sharp Intraday Drop

On October 23, South Korea's KOSPI stock market experienced a dramatic reversal following a sharp intraday decline caused by the fallout from US tech stocks and increased selling pressure. The KOSPI index opened at 5,403.17, down 130.60 points (2.36%) from the previous session. At its lowest point, the index fell to near 5,300, triggering panic among investors due to concerns about US AI investments and the impact of soaring international oil prices.

However, as the afternoon session approached, low-end buying from large-cap semiconductor stocks began to flow in, reversing the decline and eventually pushing the index above the 5,550 mark.

The KOSDAQ market, on the other hand, closed lower as its defense against the departure of foreign supply and demand weakened compared to the KOSPI's large-cap stocks. Foreign investors contributed to the decline by selling 994.1 billion won (about $750.49 million) in net sales, while domestic investors and institutions led the market's recovery by buying 872.3 billion won and 52.7 billion won, respectively.

Large-cap stocks such as SK Hynix, Samsung Electronics, Hyundai Motor, Kia, and Samsung Biologics rebounded strongly, while weaker stocks like LG Energy Solution, Samsung Electro-Mechanics, Hyundai Motor, and KB Financial Group saw declines. The KOSDAQ market's blue light flashed during trading hours, indicating losses for nine out of ten top stocks by market capitalization.

The domestic stock market's performance on this day can be described as experiencing "panic in early trading and a miracle in late trading." The aftermath of the US tech stock correction and concerns over AI infrastructure financing threatened the KOSPI to drop nearly 4% during trading hours, but the market's solid fundamentals ultimately protected it.