Stock Market Reverses Course in a Day... Buy Sidecar Triggered in Both Major Markets [fn Afternoon Market Update]

[Financial News] South Korea's two major stock markets both rebounded, triggering a temporary suspension of program buy orders, known as a buy sidecar. At 2:40 p.m. on the 10th, the KOSPI (Korea Composite Stock Price Index) was trading at 7,578.37, up 286.46 points, or 3.93%, from the previous session.
The index opened 3.57% higher at 7,552.49 from the previous close, then jumped as much as 5.6% intraday to reclaim the 7,700 level. The buy sidecar was triggered at around 12:54 p.m. It was the first such activation on the KOSPI in five trading days, since the 3rd.
On the Korea Exchange Main Board, individual investors sold 1.6334 trillion won worth of shares, taking profits. Foreign investors were net buyers of 184.9 billion won, while institutions were net buyers of 1.519 trillion won.
By sector, medical and precision equipment rose 9.17%, construction gained 7.56%, and securities advanced 6.69%. Only telecommunications fell, down 1.30%.
Among the largest companies by market capitalization, semiconductor-related stocks led the gains, with Samsung Electronics up 5.40%, SK hynix up 2.88%, SK Square up 6.56%, and Samsung Electronics Co., Ltd. Preferred Shares up 6.57%.
Other large-cap stocks also surged, including Samsung Electro-Mechanics, up 5.76%, Hyundai Motor Company, up 3.37%, and LG Energy Solution, up 3.19%.
Overnight, the U.S. stock market closed higher as hopes grew for a return to negotiations between the United States and Iran following mediation efforts by Qatar and Pakistan. Sentiment also improved as concerns over the AI industry eased on news of Micron's additional investment in the United States and Meta Platforms' plans to expand in-house AI chip production and investment.
Domestic stocks are strengthening on the back of bargain hunting and expectations for SK hynix American Depositary Receipt listing. Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, said, "Risk appetite is recovering, and large-cap stocks in Korea's IT and industrial sectors are rising together." He added, "With rising stocks accounting for nearly 90% of both major domestic markets, buying momentum is spreading."
At the same time, the KOSDAQ (Korea Securities Dealers Automated Quotations) was trading at 839.89, up 45.89 points, or 5.78%, from the previous session. The index opened 1.64% higher at 807.00 and at one point surged 6.53% intraday. As a result, a buy sidecar was triggered in the KOSDAQ market for the first time in about 10 days, since the 29th of last month.
On the KOSDAQ, individual investors sold 369 billion won and foreign investors sold 132.2 billion won. Institutions were the only net buyers, purchasing 500.9 billion won worth of shares.
nodelay@fnnews.com Park Ji-yeon Reporter