KOSPI Edges Down, KOSDAQ Surges Over 8%

On the 29th, the KOSPI index saw a slight decline in the stock market, while the KOSDAQ index surged over 8% driven by strong performances in bio and secondary battery-related stocks. The KOSPI closed at 8394.65, down 16.56 points (0.20%) from the previous day, after dropping to the early 8100s in the morning session and gradually recovering in the afternoon. In the KOSPI market, foreign investors were net sellers of 7.7332 trillion won, marking their seventh consecutive day of net selling, while individual and institutional investors were net buyers of 4.5975 trillion won and 2.9326 trillion won, respectively, partially defending against the index's decline. The volatility in the KOSPI market was attributed to market doubts about the profitability of the AI industry and the weakness of large-cap semiconductor stocks. Samsung Electronics closed down 4.86% at 323,000 won, and SK Hynix closed down 1.68% at 2,628,000 won.

The KOSDAQ market closed at 920.57, up 8.13%, fueled by a concurrent rally in bio and secondary battery stocks. The KOSDAQ index finished trading 69.20 points (8.13%) higher than the previous trading day, with a buy-side car activation occurring at 9:28 AM. In the KOSDAQ market, secondary battery-related stocks such as LG Energy Solution, SK IE Technology, and L&F, along with numerous bio stocks, surged, leading the overall market's rise. Institutional investors were net buyers of 504.1 billion won in the KOSDAQ market, and foreign investors showed a net buying surplus of 26.5 billion won, while individual investors were net sellers of 527 billion won. Foreign investors, who were net sellers in the morning, switched to net buying in the afternoon, bolstering the upward trend.

The strong performance of the KOSDAQ market was interpreted as a result of rotation inflow into growth stocks that had recently experienced significant declines. Furthermore, anticipation of market revitalization policies, such as the introduction of the KOSPI-KOSDAQ promotion system ahead of the KOSDAQ's 30th anniversary on the 1st of next month, stimulated investor sentiment. Na Young, an analyst at Our Investment & Securities, suggested that the KOSDAQ, which had been sidelined since last month due to an overconcentration on semiconductors, saw a convergence of rebalancing and bargain-hunting demand as the second and first halves of the year concluded. Sang Young, Managing Director at Mirae Asset Securities, diagnosed that while there had been large-scale selling centered around the KOSDAQ due to the concentration on semiconductors, expectations for KOSDAQ revitalization policies were gradually emerging. Jeong Eun, an analyst at KB Securities, added that the KOSDAQ showed a strong rebound in three trading days with rotation continuing around the bio and secondary battery sectors, recording the highest percentage of advancing stocks at 86.07% since March 5th of this year.

On this day, both the KOSPI and KOSDAQ markets saw an overwhelming number of advancing stocks after a long time. On the KOSPI, 820 stocks rose, and 88 stocks fell. In the KOSDAQ market, 1555 stocks advanced while only 157 declined, indicating a broad positive trend across the market.