"KOSPI Is Not the Nasdaq"... KOSPI Recovers to Flat Territory, KOSDAQ Turns Higher [fn Morning Market Report]

[Financial News] The KOSPI (Korea Composite Stock Price Index) trimmed its early losses and recovered to flat territory. The KOSDAQ turned higher, supported by strength in semiconductor materials, parts and equipment stocks.
According to the Korea Exchange (KRX) on the 11th, as of 10:20 a.m., the KOSPI was trading at 7,692.50, down 38.32 points, or 0.50%, from the previous session. The index opened 2.86% lower at 7,509.62 and at one point fell to 7,394.46, briefly breaking below the 7,400 level. It later drew in bargain buying, recovered above 7,800, and then slipped back into the 7,600 range.
In the Korea Exchange Main Board Market, individual investors were net buyers of 1.0096 trillion won. Foreigners and institutions, meanwhile, were net sellers of 988.7 billion won and 80 billion won, respectively. In program trading, combined arbitrage and non-arbitrage transactions showed a net selling bias of 1.0995 trillion won.
The market is rebounding, led by semiconductor stocks. SK hynix rose 3.17%, while HANMI Semiconductor Co., Ltd. gained 2.59%, Jusung Engineering climbed 6.03%, and LEENO Industrial Inc. advanced 1.18%. Samsung Electronics, down 0.66%, was fluctuating near the flat line, while Hyundai Motor Company, Naver, Samsung Electro-Mechanics and LG Electronics continued to decline.
Overnight, U.S. stocks closed mixed after recovering most of their losses following heightened intraday volatility. Yuanta Securities Korea Co., Ltd. analyzed that U.S. stocks opened higher on early expectations of progress in nuclear talks between the United States and Iran, as well as lower international oil prices. However, news that Crusoe had temporarily halted work on a major data center project in Wyoming became a catalyst for profit-taking. It added that the key point was that, even so, easing expectations for the nuclear talks helped stabilize oil prices and interest rates, allowing the market to recover most of the losses triggered by the data center issue and close slightly lower and mixed.
At the same time, the KOSDAQ was trading at 965.17, up 13.54 points, or 1.42%, from the previous session. The index opened at 937.17, down 14.46 points, or 1.52%, from the prior day, but then turned higher. Compared with the KOSPI, it is showing relatively firm performance because of its heavier weighting in semiconductor materials, parts and equipment stocks.
On the KOSDAQ, individuals and institutions were buying 114.3 billion won and 114 billion won worth of shares, respectively. Foreign investors, on the other hand, were selling 233.6 billion won worth.
Still, volatility remains elevated. In particular, today is the June simultaneous expiration day for futures and options. In addition, the United States Producer Price Index for May will be released tonight in Korea time, Oracle Corporation's earnings will be announced early tomorrow, and the European Central Bank (ECB) policy meeting is also scheduled. Market observers say these major events could further increase intraday volatility.
fair@fnnews.com Han Young-joon Reporter