KOSPI Rises 1.95% After Reversing Intraday Decline, Nears 7,000 [fn Market Wrap]

[Financial News] South Korea's stock market closed higher across the board on October's first trading day after overcoming early weakness.
According to the Korea Exchange (KRX) on October 1, the KOSPI Composite Index closed at 6,971.35, up 133.31 points, or 1.95%, from the previous trading day. The index opened lower at 6,814.49 and fell as low as 6,765.06 during the session, but reversed course in the afternoon and steadily extended its gains.
The market's reversal was attributed to Micron Technology's better-than-expected earnings and strong semiconductor exports from South Korea in September. The index had been weighed down by concurrent net selling from foreign and institutional investors early in the session, but it turned higher as investor sentiment improved, particularly in the semiconductor sector.
By investor group, individuals and foreign investors posted net sales of 1.4315 trillion won and 547.3 billion won, respectively. Institutions led the index's rebound with net purchases of 334.3 billion won. Foreign investors remained net sellers for five consecutive trading sessions through October 1.
Among the top market-cap stocks, Samsung Electronics and SK hynix rose 2.79% and 3.21%, respectively, closing at 276,000 won and 1,833,000 won. Expectations of an improved semiconductor industry outlook were seen as having lifted the share prices of large-cap stocks.
Samsung Electronics preferred shares rose 4.76%, Samsung Electro-Mechanics 3.17%, Samsung Biologics 2.73%, Hyundai Motor 1.16%, and LG Energy Solution 0.98%. KB Financial Group, meanwhile, fell 1.66%.
Lee Kyung-min, a researcher at Daishin Securities, said, "Micron Technology's strong earnings announcement and South Korea's strong September exports put upward pressure on the semiconductor sector." He added, "As investor sentiment improved after the market digested major events, capital rotated into sectors where expectations for earnings improvement remained strong."
The KOSDAQ also reversed its early decline and posted a sharp gain. The KOSDAQ (Korea Securities Dealers Automated Quotations) closed at 894.29, up 38.38 points, or 4.48%, from the previous session. The index opened at 853.96 and fell as low as 851.92 during the session, but later turned higher and expanded its gains.
In terms of trading flows, institutions and foreign investors led the rally with net purchases of 568.3 billion won and 228 billion won, respectively. Individuals posted net sales of 776.4 billion won as they took profits.
Semiconductor materials, parts, and equipment stocks, along with biotechnology shares, showed strength and drove the index higher. Alteogen rose 4.13%, EcoPro 5.58%, EcoPro BM 5.13%, and Jusung Engineering 3.66%. Semiconductor equipment stocks, including WONIK IPS, which gained 9.13%, EO Technics, up 8.46%, LEENO Industrial, up 10.90%, and HPSP, up 8.32%, also posted strong gains approaching double digits.
[email protected] Kang Jung-mo Reporter