Foreign and institutional investors lead buying spree as KOSPI briefly recovers 7,400 intraday [Afternoon Market Update]

[Financial News] The KOSPI (Korea Composite Stock Price Index) briefly recovered the 7,400 level intraday, driven by a sharp rally in major semiconductor stocks. As foreign and institutional investors mounted a joint buying spree, retail investors moved to lock in profits.
As of 1:55 p.m. on the 15th, the KOSPI was trading at 7,371.24, up 514.41 points, or 7.50%, from the previous session, according to the Korea Exchange.
The index opened 3.30% higher at 7,082.91 from the previous close. In the morning, it reclaimed the 7,300 level, triggering a temporary suspension of program buy orders, known as a buy-side sidecar, at around 9:06 a.m. By the afternoon, it had surged as much as 8.27% to 7,424.18.
On the Korea Exchange Main Board, foreign investors and institutions were net buyers of 2.3924 trillion won and 372.6 billion won, respectively, lifting the index higher. Retail investors sold 2.7011 trillion won worth of shares to take profits.
All sectors were in positive territory, led by electrical and electronics, which rose 9.61%, machinery and equipment, up 8.53%, and financials, up 7.17%.
Among the largest-cap stocks, major semiconductor names such as Samsung Electronics, up 7.7%, and SK hynix, up 12.44%, posted sharp gains. SK Square also jumped 18.07%, showing exceptional strength.
Other large-cap stocks also rebounded in tandem, including Samsung Electro-Mechanics, up 11.98%, Hyundai Motor Company, up 2.71%, and LG Energy Solution, up 3.57%.
Overnight, U.S. stocks closed higher on the back of a June Consumer Price Index (CPI) reading that came in below market expectations and strength in the semiconductor sector. Analysts said the inflation data eased concerns about further tightening by the Federal Reserve, especially after Christopher Waller had said earlier that another rate hike should be considered if core inflation remained elevated.
As inflation and rate pressures eased, U.S. semiconductor stocks strengthened, led by the SK hynix American Depositary Receipt, which surged 27%.
Domestic equities were supported by a technical rebound on the view that recent declines had been excessive, along with bargain hunting. Kim Yoo-mi, a researcher at Kiwoom Securities, said, "For this rebound to develop into a trend recovery for semiconductor stocks, companies need to deliver earnings confirmation on AI investment and memory demand, beyond simply being seen as oversold."
At the same time, the KOSDAQ Index was trading at 826.68, up 42.70 points, or 5.45%, from the previous session. The index opened 2.77% higher at 805.71 and rose as much as 5.68% intraday.
On the KOSDAQ market, foreign investors and institutions were net buyers of 19.6 billion won and 41.8 billion won, respectively. Retail investors sold 71.5 billion won worth of shares to realize gains.

nodelay@fnnews.com Park Ji-yeon Reporter