The domestic stock market in China rebounded sharply after several days of plunge, exhibiting a dramatic turnaround. Just the day before, South Korea's KOSPI and KOSDAQ indices had both fallen significantly, but these indices recorded double-digit rebounds within a single day. This phenomenon requires in-depth analysis of major international developments and market signals.
South Korea's KOSPI stock index recently plummeted for two consecutive days due to escalating tensions between the United States and Israel and Iran. During this period, the KOSPI fell by more than 7%, while the KOSDAQ index also experienced a nearly 17% drop. This decline even triggered safety mechanisms in the stock market, such as the "short-selling suspension mechanism."
However, on March 5th, the domestic stock market reversed course due to a surge in investor demand for bargain hunting. The South Korean KOSPI index opened three digits higher than the previous day, ultimately closing at 5,583.90 points. The KOSDAQ index also closed at 1,116.41 points, significantly recovering the previous day's losses. This rebound was linked to the recovery in international oil prices. Certain crude oil prices showed signs of stabilization, sending a positive signal to the overall market.
This shift in investor sentiment is also related to the movements of foreign capital. While foreign investors who had turned net buyers the previous day turned net sellers on the same day, the buying momentum of individual investors offset their impact. Samsung Electronics and SK Hynix saw their share prices rise by over 11% and 10%, respectively, driven by both individual and foreign buying.
Experts point out that while such a rebound is welcome, external uncertainties remain. Therefore, the stock market may still experience significant volatility in the future. Whether this rapid rebound is short-lived or the beginning of a sustainable upward trend will depend on the subsequent development of the international situation and economic indicators.
