South Korea's stock market surged nearly 3% on the afternoon of April 3, fueled by combined buying from foreign and institutional investors. Large-cap semiconductor stocks including Samsung Electronics (005930.KS) and SK hynix (000660.KS) rebounded to recoup the previous session's losses, lifting the broader index.
As of 1:03 p.m., the KOSPI stood at 5,384.90, up 2.88% from the previous trading day. The index opened with a 2.61% gain in early trading and extended its advance into the afternoon, eyeing the 3% mark. The KOSDAQ was up 0.71% at 1,063.84 at the same time.
The return of foreign investors, who had sold more than 35 trillion won ($24.5 billion) worth of KOSPI shares in March alone, provided a positive catalyst. Foreign investors, who were net sellers in early trading on the main bourse, shifted to buying during the session. They were net buyers of 252.9 billion won as of 1:03 p.m. This marked the first time foreign investors turned net buyers on the KOSPI since March 18 — a span of 12 trading days. Institutional investors were also net buyers of 737.3 billion won at the same time. The simultaneous net buying by both foreign and institutional investors was also the first since March 18. Retail investors, meanwhile, took the sharp rally as a profit-taking opportunity, net selling 1.2807 trillion won.
Most top stocks by market capitalization turned positive. Market-cap leader Samsung Electronics rose 4.04%, while SK hynix climbed 5.90%, both recovering from the previous day's plunge. Among the top 10 by market cap, Samsung Electronics preferred shares gained 3.71%, Doosan Enerbility (034020.KS) rose 3.31%, Hanwha Aerospace (012450.KS) added 2.89%, SK Square (402340.KS) was up 1.70%, and Hyundai Motor (005380.KS) edged up 1.07%. However, LG Energy Solution (373220.KS) fell 1.24%, Samsung Biologics (207940.KS) dropped 1.45%, and Kia (000270.KS) slipped 0.07%, as some large-cap battery, biotech, and automaker stocks remained on a downward trajectory.
The KOSDAQ showed a different trading pattern from the KOSPI. Retail investors single-handedly drove the index, purchasing a net 302.8 billion won, while foreign and institutional investors were net sellers of 161.5 billion won and 139.2 billion won, respectively.
Among the top KOSDAQ stocks by market cap, Alteogen (196170.KQ) surged 6.25% during the session to reclaim the No. 1 spot. EcoPro fell 0.28% and EcoPro BM declined 2.29%. Samchundang Pharmaceutical (000250.KQ), which had plunged recently, rebounded 1.48%, and Rainbow Robotics also rose 1.10%.
"After a difficult session yesterday triggered by the sell-side sidecar, the domestic market is recovering its losses once more, supported by reduced declines on Wall Street, a 2%-plus rebound in overnight KOSPI futures, and lingering hopes for war negotiations," said Han Ji-young, a researcher at Kiwoom Securities. "We should consider that downside rigidity has become more solid as the market has digested war-related headwinds for over a month."
