It was more than just a roller coaster ride... 5,600 to 6,400, a 'super-volatility tsunami' hits KOSPI [fn morning market report]

[Financial News] Before the shock from the more than 10% plunge had even faded, KOSPI surged more than 14% in a single day. In just four days, sharp drops and rebounds have repeated, and the market has moved beyond a simple roller coaster into a tsunami of volatility.
As of 9:30 a.m. on the 31st, KOSPI stood at 6,411.76, up 818.20 points, or 14.63%, from the previous trading day. During the session, it rose by more than 800 points and traded as high as 6,441.38. After falling to 5,593.56 the day before, the index rebounded sharply in just one day and quickly recovered the 6,400 level.
KOSDAQ also jumped by around 8% as it tried to reclaim the 700 level. After falling more than 6% the previous day, it rebounded sharply within a day, extending extreme volatility in both markets. Right after the opening, buy-side sidecars were triggered on both KOSPI and KOSDAQ.
Semiconductors were at the center of the rebound. SK hynix surged more than 24% to 1.644 million won, while Samsung Electronics rose more than 20% and recovered to 250,000 won. Bargain buying focused on the large semiconductor stocks that had plunged the day before, driving the index higher.
Market flows also reversed dramatically. At this point, foreign investors were net buyers of about 258 billion won in the Korea Exchange Main Board and about 80.7 billion won in KOSDAQ, leading the rebound. By contrast, individual investors were net sellers of 206.53 billion won in KOSPI and 136.9 billion won in KOSDAQ, taking profits. Foreign investors, who had shown panic selling the previous day, returned as buyers within just one day.
Market experts say sentiment recovered rapidly in a short period as positive developments from the United States and a technical rebound after the previous day's plunge came together. However, they also note that the repeated pattern of double-digit drops and gains within a single day shows a market phase in which investor sentiment and fund flows are driving prices.
[email protected] Choi Du-seon Reporter