The KOSPI gave up most of its early gains, which briefly pushed the index to the 7,500 level, and is now fluctuating around the flat line on options expiration day. Retail investors unloaded shares for a second straight day, while foreign and institutional investors propped up the index.
As of 1:20 p.m. on the 9th, the KOSPI stood at 7,238.36, down 8.43 points (-0.12%) from the previous session. The index surged more than 3% right after the open on semiconductor strength, attempting to reclaim the 7,500 level. But it slid as much as -1% during the morning amid selling pressure tied to the options expiration, before narrowing its losses in a volatile session.
Retail investors net sold 1.5764 trillion won during the session, dumping large volumes for a second consecutive day. Institutions countered with net purchases of 1.5609 trillion won to defend the index, while foreign investors were net buyers of 85 billion won. Pension funds in particular net bought more than 780 billion won, supporting the index.
At the same time, the KOSDAQ rose 6.32 points (0.81%) to 791.32, holding up better than the KOSPI. Still, it was far from its early-session showing, when it climbed more than 3% and reclaimed the 800 level. On the KOSDAQ, retail investors net sold 268.8 billion won, but institutions net bought 269.9 billion won to limit the decline. Foreign investors sold only 3.4 billion won, keeping their impact on supply and demand limited.
Among individual stocks, Samsung Electronics (005930.KS), the largest company by market capitalization, turned lower during the session and is attempting a rebound near the flat line. As of 1:20 p.m., it was trading at 275,250 won, down 0.81% from the previous day. SK hynix (000660.KS), meanwhile, held on to a 3.81% gain at 2,155,000 won as news continued of strong demand for its U.S. American depositary receipt (ADR) offering.
Hanmi Semiconductor (042700.KS) (6.43%), SK Telecom (017670.KS) (2.98%) and Hyosung Heavy Industries (298040.KS) (2.71%) posted gains, while Samsung Fire & Marine Insurance (000810.KS) (-9.54%), LG Electronics (066570.KS) (-9.24%) and Hanwha Aerospace (012450.KS) (-8.55%) fell sharply, leaving individual stocks split between winners and losers.
Kang Jin-hyuk, an analyst at Shinhan Securities, noted that bargain hunting has been flowing in, centered on the semiconductor sector, following the recent selloff. He assessed that valuation pressure has eased, with the KOSPI's price-to-earnings ratio (PER) falling below its global financial crisis low, and that it is also positive that foreign investors have broken a 13-trading-day net selling streak and have been buying both spot and futures simultaneously for two days. However, some observers say it is too early to predict the index's direction before the late session, as program trading on options expiration day could amplify supply-and-demand volatility.
