The KOSPI recovered above 8000 points on July 3, closing at 8088.34 after a sharp 440.25-point (5.76%) rebound from the previous trading day. The rally was driven by rebound buying in semiconductor stocks Samsung Electronics and SK Hynix, which together contributed 348.53 points to the index gain. The recovery came after the index had plunged to an intraday low of 7378.10 within 59 minutes of opening, reflecting residual concerns from US tech stock declines the prior night when the Philadelphia Semiconductor Index fell 5.44%.
Institutions Net Buy 4.87 Trillion Won Amid Intraday Volatility
Institutions net purchased 4.87 trillion won worth of shares through Korea Exchange and NextTrade combined, while individuals net sold 2.73 trillion won and foreigners net sold 2.22 trillion won. The institutional buying was led by financial investment accounts (3.44 trillion won), investment trusts (1.04 trillion won), insurance (104.1 billion won), and pension funds (56.2 billion won). The index experienced an intraday high-low gap of 758.18 points, with the intraday high reaching 8136.28. A buy-side program trading circuit breaker was triggered at 1:47 PM.
Samsung Electronics and SK Hynix Lead Index Recovery
Samsung Electronics closed at 309,500 won, up 23,500 won (8.22%), while SK Hynix finished at 2,425,000 won, gaining 238,000 won (10.88%). According to Mirae Asset Securities, the two stocks' combined index contribution reached 348.53 points. Other top-10 market cap stocks also turned positive during the session: Samsung C&T rose over 6%, Hanwha Aerospace gained over 5%, SK Square climbed over 4%, Samsung Life Insurance and Samsung Electro-Mechanics advanced over 3%, LG Energy Solution and Hyundai Motor increased over 2%, and Samsung Biologics rose over 1%.
Analysts Attribute Rally to Rebound Buying and Japan Market Signals
Lee Kyung-min, researcher at Daishin Securities, stated: "While concerns about employment overheating that stimulated interest rate hike possibilities subsided somewhat as US non-farm payrolls for June significantly underperformed expectations announced the previous day, profit-taking pressure continued in the US semiconductor sector. Samsung Electronics and SK Hynix also started lower, but succeeded in rebounding as rebound buying flowed in following the short-term plunge." Lee added that Kioxia's shift from sharp decline to gains in the Japanese market supported semiconductor sector sentiment and acted as upward price pressure. Lim Jung-eun and Tae Yoon-sun, researchers at KB Securities, stated: "Samsung Electronics was also influenced by Q2 earnings expectations. The Korean stock market showed strength as low-price buying flowed into financial sectors such as banking and securities amid intensified concentration of demand toward semiconductors."
Samsung Q2 Earnings Announcement Scheduled for July 7
The New York stock market will be closed on July 3 (local time) for Independence Day. Market experts identified key upcoming events: Samsung Electronics' Q2 preliminary earnings announcement at dawn on July 7, the Federal Open Market Committee (FOMC) minutes release on July 9, and SK Hynix ADR Nasdaq listing on July 10. Na Jung-hwan, researcher at NH Investment & Securities, stated: "If Samsung Electronics' operating profit significantly exceeds consensus, it can act as a signal of strong memory market conditions and serve as a catalyst to convert selling sentiment into holding and chase-buying sentiment. For the uptrend to continue, the direction for the second half must be confirmed through TSMC and ASML's earnings in mid-July and hyperscalers' capital expenditure (CAPEX) guidance." Kim Yu-mi, researcher at Kiwoom Securities, stated: "Next week, with few economic indicator releases that directly affect monetary policy, the June FOMC minutes release is the most important event. As the first FOMC under Chairman Kevin Warsh, clear policy direction signals were not provided at the press conference (on the meeting day), so it is necessary to confirm Fed members' assessments of inflation, the labor market, and the necessity of rate hikes through the minutes."
The KOSDAQ index closed at 868.41, up 1.69 points (0.19%) from the previous day. The index plunged to 823.98 during the session before turning positive at the end of trading, with individuals net buying 112.1 billion won while institutions net sold 103.9 billion won and foreigners net sold 19 billion won. Lino Industrial gained over 4%, Kolon TissueGene rose over 3%, HLB increased over 2%, Rainbow Robotics and Wonik IPS advanced over 1%, and Ecopro showed slight gains. Jusung Engineering plunged over 15%, Alteogen declined over 2%, and ABL Bio and Ecopro BM showed slight weakness. The won/dollar exchange rate closed Seoul foreign exchange market daytime trading at 1525.6 won, down 30.2 won from the previous trading day.
FAQ
What caused the KOSPI to recover above 8000 points on July 3?
The KOSPI recovered 440.25 points (5.76%) to close at 8088.34 on July 3, driven by rebound buying in semiconductor stocks Samsung Electronics and SK Hynix after the index had dropped to an intraday low of 7378.10. Institutions net purchased 4.87 trillion won worth of shares, with the two semiconductor stocks contributing 348.53 points to the index gain.
How did Samsung Electronics and SK Hynix perform on July 3?
Samsung Electronics closed at 309,500 won, up 8.22%, while SK Hynix finished at 2,425,000 won, gaining 10.88%. According to Mirae Asset Securities, the two stocks' combined contribution to the KOSPI reached 348.53 points during the session.
When is Samsung Electronics announcing Q2 earnings?
Samsung Electronics is scheduled to announce Q2 preliminary earnings at dawn on July 7. Market experts identified this announcement, along with the FOMC minutes release on July 9 and SK Hynix ADR Nasdaq listing on July 10, as key upcoming events for the market.
