KOSPI swings wildly, 'borrowed investment' forced liquidations hit 2-year high

South Korea's stock market experienced a turbulent session, with the KOSPI index rebounding to surpass the 8,000-point mark. The surge was partly fueled by growing optimism over a potential ceasefire in the Middle East and followed a positive trend on the New York Stock Exchange, influenced by remarks from former U.S. President Donald Trump regarding a potential peace deal with Iran.

The KOSPI closed up 4.63% at 8,123.62 on the 12th, after reaching an intraday high of 8,400. The KOSDAQ also recovered, closing 3.22% higher at 1,029.05, breaking the 1,000-point threshold for the first time in four trading days. A 'buy-side call' was triggered on the KOSPI early in the session, temporarily halting program buy orders.

Despite the market's recovery, the sharp price swings have created side effects. The volume of forced liquidations for investors who borrowed money to invest, known as 'bitu,' has reached its highest level in two years and eight months. Major companies saw significant gains, with Samsung Electronics rising 7.86% and SK Hynix increasing by 2.33%.