[Edaily Reporter Kim Hyung-il ] The KOSPI is rebounding by around 3%, buoyed by bargain-hunting following the previous day’s sharp drop of more than 5% and the stabilization of the surge in U.S. long-term interest rates. In particular, large-cap semiconductor stocks are leading the rally, with SK hynix(000660)surging by more than 8% after announcing a plan to buy back and cancel its own shares worth 40 trillion won. The rebound in U.S. stock markets, driven by stabilizing long-term interest rates and a rally in biotech stocks, is also helping to improve investor sentiment in the domestic market.

As of 9:20 a.m. on the 20th, the KOSPI stands at 6,720.31, up 249.14 points (3.85%) from the previous trading day. The index opened at 6,680.34, up 3.23%, and has since extended its gains. There are 572 gainers and 262 losers, with gainers outnumbering losers by more than two to one. In terms of supply and demand, retail investors are net buyers of 312.3 billion won, while foreign and institutional investors are net sellers of 128.6 billion won and 265.5 billion won, respectively.

Large-cap stocks are leading the KOSPI’s rebound. Large-caps are up 4.25%, significantly outpacing the gains of mid-caps (1.33%) and small-caps (1.03%). SamsungElectronics(005930)is trading at 261,500 won, up 5.66%, while SK hynix has surged 8.93% to 1,634,000 won. SamsungElectronics(1P)(005935)is also up 5.01%, and SKSQUARE(402340)is up 6.77%.

In particular, SK hynix’s announcement after the market closed the previous day of a plan to buy back and cancel 40 trillion won worth of its own shares served as a positive catalyst. SK hynix plans to purchase 24.07 million shares on the open market by November 19 and cancel them in their entirety. This represents approximately 3.3% of its outstanding shares. SK hynix has also raised the target for returning free cash flow (FCF) to shareholders under its existing shareholder return policy from “within 50%” to “at least 50%.”

By sector, the electrical and electronics sector is showing the strongest gains, rising 6%. Buying momentum is centered on large-cap stocks, with the manufacturing sector up 4.66%, securities up 4.03%, and finance up 3.95%.

The KOSDAQ also opened with a gain in the 2% range but has since pared some of its gains. At the same time, the KOSDAQ index stands at 835.85, up 11.39 points (1.38%) from the previous trading day. There are 1,097 gainers, more than double the 524 decliners. Retail investors and institutions are net buyers of 58.4 billion won and 21.7 billion won, respectively, while foreign investors are net sellers of 79.8 billion won.

On the KOSDAQ, major stocks are showing strength, with Alteogen Inc.(196170)surging 8.57%, ECOPRO BM CO., LTD.(247540) up 4.37%, EO Technics Co., Ltd.(039030) up 3.98%, and WONIK IPS Co.,Ltd.(240810) up 2.56%. In contrast, HLB INC.(028300)is down 8.91%, showing weakness.

Han Ji-young, an analyst at KIWOOM Securities, stated, “As bargain-hunting flows in following yesterday’s sharp decline and the surge in U.S. long-term interest rates subsides, investor sentiment toward growth stocks is expected to improve,” adding, “SK hynix’s large-scale share buyback and cancellation is a factor that will boost investor sentiment toward semiconductor stocks.” She further predicted, “As shareholder returns from leading stocks, the stabilization of U.S. long-term interest rates, and the easing of global semiconductor market concentration converge, the resilience of the KOSPI and KOSDAQ markets will improve.”

Meanwhile, on the 19th (local time), the New York stock market rose despite the hawkish tone of the July Federal Open Market Committee (FOMC) minutes, buoyed by the stabilization of interest rates following the U.S. Treasury’s repurchase of long-term government bonds and strength in biotech stocks. The Dow Jones Industrial Average rose 0.22%, the S&P 500 rose 0.21%, and the Nasdaq rose 0.16%.