[Edaily Reporter Kim Kyung-eun ] On the 16th, the KOSPI is rebounding by more than 3% as it extends its intraday gains. With the index having fallen for seven consecutive trading days through the previous day—resulting in a cumulative decline of over 20%—expectations for a technical rebound are seen as growing.

According to MP Doctor, as of 10:35 a.m. today, the KOSPI is trading at 5,725.26, up 171.04 points (3.08%) from the previous trading day. The index opened at 5,653.99, up 99.77 points (1.80%) from the previous close, and then extended its gains during the session to recover the 5,700 level. At one point during the session, it rose as high as 5,745.36.

By investor type, retail investors were net buyers of 45.2 billion won, institutional investors were net buyers of 92.3 billion won, and foreign investors were net sellers of 345.1 billion won.

Today’s rebound is interpreted as a technical correction following the previous day’s sharp decline. The KOSPI closed at 5,554.22 yesterday after plunging 7.57%, marking its seventh consecutive trading day of losses. The securities industry views the likelihood of a short-term rebound as high, given that the recent decline was excessive.

Han Ji-young, an analyst at KIWOOM Securities, explained, “This seven-trading-day streak of sharp declines is an unprecedented phenomenon in history, and the cumulative decline during this period of -20.8% ranks as the third-largest since 2005.” She added, “In past cases with the largest cumulative declines over seven trading days, a short-term price rebound followed the sharp drop.” She further assessed, “Considering past cases, we are now in a phase where the expected probability of a technical rebound has significantly increased relative to the risk of further declines.”

The fact that the New York stock market managed to rebound overnight also had a positive effect on the domestic stock market. On the 15th (local time), the Dow Jones Industrial Average rose 1.08%, the S&P 500 Index rose 0.33%, and the Nasdaq Index rose 0.08%. Although the U.S. September Producer Price Index (PPI) exceeded market expectations, falling Treasury yields supported the stock market. Concerns about credit risks related to artificial intelligence (AI) were also partially alleviated after Jensen Huang, CEO of NVIDIA, dismissed concerns about CoreWeave’s financial soundness.

The two stocks with the highest market capitalization on the KOSPI are both up by more than 2%. SamsungElectronics(005930)is trading at 214,750 won, up 4,750 won (2.26%) from the previous close. SK hynix(000660)is trading at 1,295,000 won, up 33,000 won (2.61%) from the previous trading day.

In addition, most of the top-market-cap stocks—including SKSQUARE(402340)(3.66%), LG Energy Solution(373220)(0.87%), SamsungElectroMechanics(009150)(2.49%), HyundaiMotor(005380)(6.26%), SAMSUNG BIOLOGICS(207940)(4.81%), KB Financial Group(105560)(3.77%), Samsung Life Insurance(032830)(6.14%), SAMSUNG C&T CORPORATION(028260)(7.66%), and HANWHA AEROSPACE(012450)(8.50%)—are rising, partially recovering from the previous day’s losses.

At the same time, the KOSDAQ is trading at 789.72, up 28.90 points (3.80%) from the previous trading day. The index opened at 772.17, up 11.35 points (1.49%) from the previous close, and appears to be continuing its upward trend.

By investor type, retail investors made net purchases of 55.4 billion won, institutional investors made net purchases of 57.6 billion won, and foreign investors made net sales of 118.2 billion won.

Among the top market-cap stocks, most are on the rise, including Alteogen Inc.(196170)(7.96%), ECOPRO CO., LTD(086520)(1.11%), ECOPRO BM CO., LTD.(247540)(0.38%), JUSUNG ENGINEERING Co.,Ltd.(036930)(1.71%), and Rainbow Robotics(277810)(1.88%).

Yang Hyun-kyung, an analyst at iM Securities, stated, “Rather than the early-session rebound in the index, what matters most is whether foreign selling pressure subsides and whether SamsungElectronics and SK hynix can maintain their intraday gains.” She added, “If selling pressure on large-cap semiconductor stocks continues, the early rebound could weaken; however, if supply and demand for these two stocks stabilize, the index is likely to recover from its oversold condition.”