The KOSDAQ index, which had been left out of the KOSPI rally, rose more than 2% during intraday trading on Wednesday, rebounding for the first time in six sessions. As profit-taking emerged in KOSPI large-cap stocks, a rotation of funds flowed into oversold KOSDAQ sectors.
According to the Korea Exchange, the KOSDAQ index was trading at 1,050.19 as of 2:37 p.m. that day, up 24.16 points, or 2.35%, from the previous session. The KOSDAQ also climbed as high as 1,065.90 intraday, widening its gains.
The KOSDAQ had fallen for five consecutive sessions from May 27 through this month's 2nd. During that period, the index dropped 12.59% from 1,173.80 to 1,026.03. This marked the lowest level since March 4, when it slipped below the 1,000 mark intraday on the shock of the outbreak of war between the United States and Iran. This contrasted with the KOSPI, which rose 6.79% over the same period, setting record highs day after day.
In terms of supply and demand, institutions led the KOSDAQ rebound with net purchases of 204.8 billion won. Retail investors and foreigners were net sellers of 177.5 billion won and 32.3 billion won, respectively.
By sector, buying interest concentrated in the manufacturing, materials, and equipment sectors that had suffered steep declines. Among KOSDAQ sectors, machinery and equipment recorded the highest gain, rising more than 7%, while telecommunications, chemicals, and manufacturing sectors were also strong. Among top market-cap stocks, Jusung Engineering (036930) surged 29.96%, and EO Technics (039030) also showed an uptrend. AlteoGen (196170), Ecopro (086520), Ecopro BM (247540), and Samchundang Pharm (000250) were weak.
The KOSPI took a breather. At the same time, the KOSPI was trading at 8,720.28 points, down 81.21 points, or 0.92%, from the previous session. While retail investors and institutions were net buyers of 4.2858 trillion won and 1.5847 trillion won, respectively, foreigners pulled the index down with net selling of 5.9929 trillion won.
Regarding the recent decoupling trend between the KOSPI and KOSDAQ appearing in the opposite direction on this day, the market sees it as the result of a combination of large-cap profit-taking and expectations for KOSDAQ stimulus measures. The fact that the Financial Services Commission (FSC) decided to summon securities firms' KOSDAQ market officials that day to discuss the current state of the KOSDAQ market and future revitalization measures is also interpreted as having influenced investor sentiment.
The growing expectation of benefits for KOSDAQ companies from the launch of the National Growth Fund is also cited as a rebound factor. Kang Jin-hyuk, a researcher at Shinhan Securities, analyzed, "With the financial authorities' emergency meeting on KOSDAQ revitalization scheduled, it appears to be a technical rebound driven by expectations for stimulus measures and the strength of materials, parts, and equipment stocks."
There is also an interpretation that this is a rotation signal of funds flowing out of the KOSPI into the KOSDAQ. Seo Sang-young, a researcher at Mirae Asset Securities, said, "In the U.S. after-hours stock market, semiconductor and AI companies were sluggish while retail distribution companies and pharmaceutical and bio firms showed an uptrend." He added, "Considering this, a sector rotation market is unfolding."
