After a 5% plunge the previous day that shocked the market, the KOSPI rebounded more than 6% on the 3rd, setting a new all-time closing high just two sessions later. Samsung Electronics soared more than 10%, rewriting its all-time high, and other large-cap stocks recovered much of the prior day losses. The KOSDAQ also rebounded more than 4%, while the won-dollar exchange rate, which had topped 1,460 won the day before, quickly fell by nearly 20 won into the 1,440 range.

The KOSPI closed at 5,288.08, up 338.41 points (6.84%) from the previous session. This is a new all-time closing high, surpassing the previous record close of 5,224.36 set on January 30. In terms of daily percentage gain, it was the highest in 5 years and 11 months since March 24, 2020 (8.6%) during the COVID-19 pandemic.

After surrendering the 5,000 level the previous day with a 274.69-point plunge that marked the ‘largest one-day decline on record’, the KOSPI posted the ‘largest one-day gain on record’ and rebounded even more than the prior drop.

Early in the session, a buy-sidecar (temporary suspension of program trading buy orders) was also triggered on the KOSPI.

Because the previous day steep decline stemmed from flow-driven, overheated conditions, dip-buying on the perception of an excessive drop flowed in quickly and lifted the index. In particular, on the 2nd (local time), overseas investment bank (IB) JP Morgan raised its KOSPI target to 6,000, and to 7,500 under a bull-market scenario, which accelerated the advance. JP Morgan cited semiconductor strength led by Samsung Electronics and improvements in corporate governance as reasons for the higher KOSPI outlook.

Semiconductors and large caps that had slumped the day before shot up, forming a ‘pillar of fire’ and driving a sharp rebound in the index. Samsung Electronics jumped 11.37% to finish at 167,500 won, setting new all-time highs both intraday and at the close, while SK hynix surged 9.28% to 907,000 won, reclaiming the ‘900,000-won Hynix’ label. Other large caps such as SK Square, Hanwha Aerospace, and HD Hyundai Heavy Industries also gained more than 4%.

Institutions and foreigners, who had dumped more than 2 trillion won the previous day, turned heavy net buyers and lifted the index. In the main board on the day, foreigners were net buyers of 716.5 billion won and institutions 2.1685 trillion won. Individuals, who had acted as buyers of 4.5 trillion won on the KOSPI the previous day to support the market, turned to profit-taking and were net sellers of 2.9373 trillion won.

The KOSDAQ also rebounded quickly, ending at 1,144.33, up 45.97 points (4.19%) from the previous day. Domestic gold and silver exchange-traded funds (ETFs), which had closed at limit-down the previous day, rebounded by 3 to 9% and recouped part of the losses.

The USD/KRW rate, which had topped 1,460 won, finished daytime trading on the Seoul foreign exchange market at 1,445.4 won per dollar, down 18.9 won from the previous session.