KOSPI Rises for Fourth Day, Led by Semiconductor Rebound

South Korea's KOSPI index has shown a strong rebound, closing above 6800 points for the first time in two weeks after rising for four consecutive trading days. The market's recovery is being driven by major semiconductor stocks, which had previously faced investor skepticism regarding the peak of AI demand. This resurgence in tech giants like Samsung Electronics and SK Hynix, both experiencing significant gains, is reminiscent of the market's earlier rally.

However, a key difference from the previous surge is the current stability in market volatility. The KOSPI 200 Volatility Index, often referred to as the "Korean Fear Index," has significantly decreased from its peak, indicating a more measured investor sentiment. This contrasts with the extreme fear observed earlier in the month. The current rally also shows a more balanced performance across market capitalizations, with mid-cap and small-cap stocks also posting gains, suggesting a broader market recovery rather than a concentrated surge.

Analysts are interpreting this sustained upward trend and stable volatility as signs that the KOSPI is gradually establishing a firmer base. The market appears to be moving beyond its recent sharp decline, which saw the index drop by approximately 39% from its peak. The concurrent rise in the KOSDAQ index, which typically moves inversely to the KOSPI, further supports the notion of a general market upturn. This suggests a potential shift towards a more stable and sustainable growth phase for the South Korean stock market.

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Even amidst the seesaw game between sectors, the overall market bottom is solidifying.