KOSPI rebounds from sharp fall to reclaim 7,700 level amid market volatility

South Korea's KOSPI index staged a remarkable recovery on Friday, rebounding from a near 4% plunge to trade higher, reclaiming the 7,700-point level. The benchmark index opened at 7,739.75 points, up 91.66 points, or 1.20%, from the previous day's close. The KOSPI experienced significant fluctuations during early trading, briefly falling below 7,400 points before reversing course. This volatility was largely attributed to a "semiconductor shock" that hit the US stock market overnight. Major US semiconductor stocks, including Micron Technology and Nvidia, saw significant declines, impacting investor sentiment. The Philadelphia Semiconductor Index also dropped sharply, reflecting the broader concerns in the sector. Despite the market turbulence, institutional investors provided strong support, with net purchases totaling 1.3262 trillion won in the KOSPI market. This buying activity helped to stabilize the index and drive its recovery. In contrast, foreign and individual investors were net sellers, offloading 1.2823 trillion won and 91.5 billion won, respectively. Leading stocks showed mixed performance. Samsung Electronics surged over 4%, and SK Hynix rose about 0.8%. Other large-cap companies like Samsung C&T, KB Financial, Hanwha Aerospace, and Kia also saw gains between 1-3%. However, SK Square, Samsung Electro-Mechanics, Hyundai Motor, HD Hyundai Heavy Industries, and Doosan Enerbility experienced declines of 1-4%. Meanwhile, the KOSDAQ index traded down 2.74% at 842.99 points.