SK hynix Hits Upper Limit, Samsung Electronics Surges 26%... KOSPI Jumps 1,000 Points for Record Gain [fn Market Close]

[Financial News] South Korea's stock market, which had suffered a sharp selloff that triggered circuit breakers for two consecutive days for the first time ever, posted its biggest gain on record just one day later. Only two days earlier, the market had logged a monthly decline worse than during the International Monetary Fund (IMF) foreign exchange crisis. This time, it set a new all-time high for a closing-day gain, underscoring extreme volatility.
According to the Korea Exchange on the 31st, the KOSPI closed at 6,595.45, up 1,001.89 points, or 17.91%, from the previous session. That marked the largest closing-day gain in history. During the session, it surged as high as 6,630.77, with gains reaching 18.54%.
The KOSDAQ also finished at 719.76, up 74.98 points, or 11.63%, from the previous session. In both markets, a buy-side sidecar was triggered shortly after the open, creating a stark contrast to the previous two sessions, when circuit breakers were activated for the first time in history on two consecutive days.
Foreign investors led the rebound. On the Korea Exchange Main Board, foreigners bought a net 563.69 billion won. Individuals sold a net 671.81 billion won, taking profits, while institutions bought a net 117.9 billion won, led by financial investment firms. In the KOSDAQ market, foreigners and institutions bought a net 174.5 billion won and 290.4 billion won, respectively. Individuals sold a net 464.5 billion won.
SK hynix surged to the daily upper limit during trading and closed at 1.718 million won, marking a limit-up finish. It was the first time SK hynix had ended the day at the upper limit under the 30% price cap system. Samsung Electronics also closed at 262,500 won, up 26.81%, posting a gain well above 20%.
Kim Joo-yeon, a researcher at Mirae Asset Securities, analyzed that "the strong earnings of U.S. big tech companies helped restore investment sentiment in Artificial Intelligence (AI), triggering a sharp rebound led by semiconductors." She added that "the KOSPI's gain has surpassed the previous record closing-day rise of 11.95% set in October 2008."
The securities industry believes the strong results from U.S. big tech firms, expectations for expanded AI investment, and the view that much of the recent deleveraging has already run its course helped fuel foreign buying. Analysts also said bargain hunting intensified as prices became more attractive after the excessive declines seen through the previous day.
Kang Jin-hyuk, a researcher at Shinhan Investment Corp., said, "Foreign buying came in as strong big tech earnings, expectations for greater AI investment, and the perception that deleveraging is nearing completion all came together." He added, "The KOSPI's 12-month forward price-earnings ratio fell to as low as 4.85 times the previous day, highlighting valuation appeal, but investors should be cautious about profit-taking after the sharp short-term rally."

[email protected] Choi Du-seon Reporter