KOSPI Reverses Course After Sharp Drop as Foreign Investors Buy and Chip Stocks Rebound [fn Afternoon Market Update]

[Financial News] The KOSPI, which opened lower, reversed course and moved higher, buoyed by buying from foreign and institutional investors. It fell more than 3% early in the session but recouped its losses as bargain hunters moved into large-cap stocks, including major semiconductor companies.
The KOSDAQ, however, has performed relatively poorly, making it difficult to say that overall investor sentiment has fully recovered.
According to the Korea Exchange on the 19th, as of 2 p.m. that day, the KOSPI stood at 5,704.28, up 36.23 points (0.64%) from the previous trading day. The index opened at 5,488.41 and plunged early in the session, but later turned higher as buying flowed in.
Buying by foreign and institutional investors stood out in the trading flows. According to the figures shown, foreign investors net bought 445.5 billion won and institutions net bought 941.8 billion won on the benchmark securities market, while individual investors net sold 1.3873 trillion won. As foreign buying partly reversed the selling-dominated flows during the sharp downturn, it helped support the index's rebound.
Kim Ju-yeon, an analyst at Mirae Asset Securities, highlighted foreign investors' net buying for a second consecutive day. He noted that the domestic market pared its losses after falling around 3% early in the session.
The shift in foreign investor flows to net buying is positive, but rather than treating it as a definite trend reversal, it is necessary to see whether net buying continues.
By sector, Kim also highlighted growth in the energy storage system (ESS) market, which is centered on North America. Installations hit a record high in the second quarter, and are expected to increase further in the third quarter, according to his analysis.
He cited Samsung SDI, LG Energy Solution, SK Innovation Co., Ltd., and POSCO Future M among the related stocks. He also said defensive stocks such as pharmaceuticals, food and beverages, and utilities could outperform relatively during periods of rising volatility in growth stocks centered on the artificial intelligence (AI) value chain.
In afternoon trading, semiconductor, biotech, and secondary-battery-related stocks were indeed strong. Samsung Electronics traded at 215,750 won, up 2,500 won (1.20%) from the previous trading day, while SK hynix traded at 255,000 won, up 17,000 won (1.34%).
Samsung Electro-Mechanics (2.78%), LG Energy Solution (6.20%), and Samsung Biologics (8.55%) also rose. Samsung Biologics drew investor interest in part by showcasing its capabilities in providing services across the full antibody-drug conjugate (ADC) lifecycle at World ADC.
As of 2 p.m., the KOSDAQ stood at 798.68, up 3.90 points (0.49%) from the previous trading day. However, given that the market rebound is uneven across sectors and stocks, it is too early to conclude from today's reversal alone that the sharp downturn has subsided. Whether foreign buying continues and whether it spreads to areas such as ESS and defensive stocks are seen as factors that will shape the market's direction.

[email protected] Kang Jung-mo Reporter