Index closes up 267.18 points at 8,471.02, recovering from prior session's rout
Swings from 8,080 to 8,577 intraday as volatility spikes
Samsung Electronics surges 9.84%, reclaims top spot by market cap
The Kospi rebounded more than 3% on Wednesday, recovering to the 8,470 level as bargain hunters moved in following the previous session's near-10% collapse.
The index swung nearly 500 points intraday amid intense volatility, with retail investors and institutions driving large-scale net purchases that lifted the benchmark. Samsung Electronics surged to reclaim its position as the top Kospi stock by market capitalization.
According to Korea Exchange, the Kospi closed up 267.18 points, or 3.26%, at 8,471.02 on Wednesday.
The index opened 152.95 points, or 1.86%, higher at 8,356.79 and extended gains to as high as 8,577.52, a rise of 4.55%. Around midday it reversed sharply, falling to 8,080.99 and briefly threatening the 8,000 level, before recovering in the afternoon to close in positive territory.
The index reversed direction multiple times during the session, posting an intraday range of 496.53 points between its high and low. The turbulence sent the KOSPI 200 volatility index up 6.55% from the previous session to 95.27.
Retail investors and institutions were the main drivers of the rally on the main board, posting net purchases of 2.89 trillion won ($1.88 billion) and 2.13 trillion won, respectively. Foreign investors were net sellers of 5.16 trillion won.
The rebound was fueled by bargain buying following the previous session's near-10% plunge. The gains were led by Samsung Electronics, up 9.84%, and SK Hynix, up 0.98% — the two semiconductor heavyweights that had each tumbled more than 12% the day before.
Among other large-cap stocks, Samsung Life, LG Energy Solution, Samsung C&T and Samsung Biologics all rose. SK Square, Samsung Electro-Mechanics, Hyundai Motor and HD Hyundai Heavy fell.
Samsung Electronics drew additional buying interest after reports emerged that the company was preparing to launch a buyback of nearly 90 trillion won in its own shares. Its common stock market cap rose to 1,991 trillion won, overtaking SK Hynix's 1,839 trillion won and reclaiming the title of the Kospi's most valuable stock for the first time in two trading sessions.
The Kosdaq closed up 17.79 points, or 2.00%, at 909.31. The index opened 13.61 points, or 1.53%, higher at 905.13 and fluctuated before trending upward to end the session with gains.
On the Kosdaq, retail investors and foreign investors were net sellers of 362.2 billion won and 7.5 billion won, respectively, while institutions provided support with net purchases of 347.6 billion won.
Most large-cap Kosdaq stocks rose, with Alteogen, Ecopro BM, Ecopro and Rainbow Robotics all posting gains. Among the top 10 by market cap, Jusung Engineering was the only decliner.
The won weakened slightly against the dollar, holding at an elevated level in the mid-1,500 won range. As of 3:30 p.m. in the Seoul foreign exchange market, the won was trading at 1,541.8 won per dollar, down 2.7 won from the previous session.
th5@heraldcorp.com
