The KOSDAQ market rallied in early trading Tuesday on expectations for government measures to revitalize the secondary bourse, while the KOSPI fell more than 2% as profit-taking hit large-cap semiconductor stocks, highlighting a sharp divergence between the two markets.
According to the Korea Exchange, the KOSPI opened at 8,623.82, down 177.67 points or 2.02% from the previous session. Foreign investors led the decline, net selling more than 1 trillion won within the first 10 minutes of trading.
The KOSDAQ opened at 1,032.91, up 6.88 points or 0.67%, before extending gains to trade more than 2% higher. It marked the index's first gain in six trading sessions.
As of 9:12 a.m., most top market-cap stocks on the KOSPI were trading lower. Samsung Electronics (005930.KS) fell 1.80% and SK hynix (000660.KS) declined 3.18%, while Hyundai Motor (005380.KS) lost 4.39%, LG Energy Solution (373220.KS) dropped 2.26%, and Samsung Life Insurance (032830.KS) tumbled 11.67%. Samsung C&T (3.81%) and HD Hyundai Heavy Industries (0.30%) bucked the trend.
On the KOSDAQ, biotech and growth stocks rose on policy expectations. Financial authorities are holding an emergency meeting Tuesday to discuss measures to revitalize the KOSDAQ market. The Financial Services Commission (FSC) plans to discuss the current state of the KOSDAQ and future revitalization plans with industry officials, including KOSDAQ market managers from securities firms.
By stock, EcoPro BM gained 3.54%, Alteogen rose 2.10%, EcoPro climbed 6.11%, Kolon TissueGene advanced 4.81%, and Samchundang Pharm rose 5.96%, while Jusung Engineering surged 9.95%. Rainbow Robotics (-3.93%) and HLB (-0.38%) traded lower.
Analysts said the recent semiconductor-led rally on the KOSPI has come with heightened intraday volatility, and that Tuesday's session reflected pressure on chip sentiment from a U.S. market correction and a stronger dollar against the won. The KOSPI's losses also reflected weakness in U.S. equities during the Korean market's holiday and profit-taking across the semiconductor sector after Broadcom issued earnings guidance that fell short of market expectations.
"External and domestic headwinds, including U.S.-Iran tensions, instability in the private credit market, and disappointment over Broadcom's earnings, are amplifying short-term market volatility, but they are not significant enough to derail the existing bull market trend," said Han Ji-young, an analyst at Kiwoom Securities. "Rather than significantly reducing equity exposure, investors should focus on leading stocks with intact earnings momentum."
