The KOSPI rebounded sharply in three trading days, recovering losses from the recent selloff. As concerns over excessive artificial intelligence investment eased, investor sentiment revived, with retail investors who bought at the lows emerging as winners once again in the volatile market.
According to the Korea Exchange on the 9th, the KOSPI closed at 5298.04, up 208.90 points (4.10%) from the previous trading day, approaching the 5300 level. The index, which had fallen consecutively on the 5th and 6th of this month, broke its losing streak with the day's gains. The KOSDAQ also rose 46.78 points (4.33%) to close at 1127.55, settling above the 1100 level.
Semiconductor stocks led the rebound, with Samsung Electronics (005930) gaining 4.92% and SK hynix (000660) rising 5.72%, while most large-cap stocks advanced. "The KOSPI rebounded as panic selling subsided," said Lee Kyung-min, a researcher at Daishin Securities. "Comments from Nvidia CEO Jensen Huang that AI infrastructure investment is not excessive had a positive effect on investor sentiment."
Market observers note that retail investors have consistently positioned themselves advantageously during recent volatile trading. Unlike institutions and foreign investors who sold during the sharp decline, individual investors bought at the lows and took profits during the rebound.
On the 5th, when foreign investors net sold 5.01 trillion won and institutions net sold 2.07 trillion won, retail investors defended the falling market with net purchases of 6.78 trillion won. On the 6th, individuals bought 2.17 trillion won worth of shares while foreign investors net sold 3.32 trillion won. During the rebound on the 9th, retail investors net sold 3.99 trillion won on the KOSPI to realize gains, while institutions and foreign investors net bought 3.23 trillion won and 609 billion won respectively, lifting the index. This mirrors the pattern from earlier this month, when retail investors who weathered the sharp decline on the 2nd and 3rd celebrated a more than 6% KOSPI surge on the 4th.
However, signs of market overheating are also growing. As retail investors poured in funds expecting a quick rebound after the correction, margin loan balances reached a record high of 31.10 trillion won as of the 6th. Analysts warn that excessive leveraged investment requires caution, as volatility could expand again following the sharp short-term gains.