[Edaily Reporter kyoungeun kim ] On the afternoon of the 2nd, the KOSPI continued its sharp rally of over 3%, with pension funds and share buybacks providing support despite the aftershocks of the sharp decline in U.S. artificial intelligence (AI) stocks. The index has recovered to the 5,900 level.

According to MP Doctor, as of 1:55 p.m., the KOSPI is trading at 5,904.49, up 173.75 points (3.03%) from the previous trading day.

Kang Jin-hyuk, a senior researcher at Shinhan Investment Securities, said, “After approaching the 5,600 level, pension funds, financial investment firms, and other corporate investors provided support on the downside, and inflows have continued even after pension funds recorded their second-largest-ever net buying volume on the 30th of last month.” He added, “SK hynix’s share buyback is also acting as a factor supporting the bottom, and we are seeing a rebound that is not solely driven by the semiconductor sector.”

Lee Kyung-min, an analyst at DaishinSecurities, said, “The forward price-to-earnings ratio (P/E ratio) of 4.14x is the lowest level since 2001, so if the market fluctuates around the 5,500 level, it presents an opportunity to increase exposure,” and “In this ‘de-rating’ scenario—where earnings have risen but the PER has fallen—if discount rates and supply-demand dynamics return to normal, the KOSPI could reach its first target range of 6,600 to 6,700.”

On this day, the Korea Exchange’s implementation of its first-ever system for publicly listing companies with low price-to-book ratios (PBR) also stimulated buying momentum. HYUNDAI STEEL surged by over 10%, and HANWHA LIFE INSURANCE also showed strength. Buyers seeking bargains also flowed into shipbuilding, defense, and power sector stocks, which had recently suffered sharp declines. Hanwha Ocean surged 9.8% on news that it had secured its first order to build a U.S. Navy vessel just two years after acquiring the Philly Shipyard.

In the stock market, institutional investors are leading the index higher with net purchases totaling 1.1577 trillion won. In contrast, retail investors and foreign investors are net sellers, with net sales of 1.1502 trillion won and 385.5 billion won, respectively. There are 634 gainers and 244 losers.

Stocks with the highest market capitalization are showing strength, led by semiconductor stocks. SKSQUARE(402340)(+6.02%), SK hynix(000660)(+5.22%), SamsungElectronics(005930)(+2.78%), SamsungElectronics(1P)(005935)(+2.13%), HyundaiMotor(005380)(+1.33%), Samsung Life Insurance(032830)(+0.92%), and SamsungElectroMechanics(009150)(+1.09%) are all rising.

On the other hand, SAMSUNG BIOLOGICS(207940)(-2.89%), LG Energy Solution(373220)(-2.09%), and KB Financial Group(105560)(-1.54%) are down.

At this time, the KOSDAQ is also trading at 736.37, up 11.99 points (1.66%). Institutional investors are net buyers by 44.2 billion won. In contrast, retail investors and foreign investors are net sellers by 13.6 billion won and 25.4 billion won, respectively. There are 1,124 stocks rising and 550 stocks falling.

Most of the top KOSDAQ stocks by market capitalization are also rising. SIMMTECH Co., Ltd.(222800)(+7.58%), WONIK IPS Co.,Ltd.(240810)(+4.18%), HLB INC.(028300)(+3.88%), JUSUNG ENGINEERING Co.,Ltd.(036930)(+2.30%), ECOPRO CO., LTD(086520)(+1.59%), Alteogen Inc.(196170)(+1.42%), EO Technics Co., Ltd.(039030)(+1.42%), LEENO Industrial Inc(058470)(+1.43%), and ECOPRO BM CO., LTD.(247540)(+0.44%) are all rising. Rainbow Robotics(277810)is trading flat.

By sector, air cargo transportation and logistics (9.7%), electrical equipment (7.8%), shipbuilding (6.5%), and airlines (6.1%) are surging. In contrast, healthcare companies and services (-4.5%), real estate (-3.5%), and property and casualty insurance (-2.3%) are down.