South Korean stock indices posted sharp gains on the 21st, with the KOSPI rising 3.56% to 6747.95 and the KOSDAQ climbing 0.49% to 753.34, driven by simultaneous buying from foreign and institutional investors totaling over 2.2 trillion won. At 12:41 PM, a buy-side circuit breaker was triggered on the securities market—the 19th occurrence this year—following a sell-side circuit breaker the previous trading day, underscoring persistent market volatility. The rally reversed an intraday dip to the 6440 level shortly after opening, with major semiconductor stocks Samsung Electronics and SK Hynix advancing 6.15% and 4.08% respectively amid anticipation of upcoming US Big Tech earnings reports starting with Alphabet on the 23rd (local time).
KOSPI Surges 3.56% on Foreign and Institutional Buying
The KOSPI index closed at 6747.95 on the 21st, up 231.68 points (3.56%) from the previous trading day, according to MPDoctor. The index opened at 6553.88, up 0.58%, but briefly turned negative shortly after the opening bell, dropping to the 6440 level. Thirty-five minutes after opening, the index reversed course and sustained gains throughout the session, marking a two-day turnaround. Foreign investors extended their buying streak to two consecutive days, purchasing 614.4 billion won worth of stocks. Institutional investors reversed to net buying after two days, accumulating over 1.6 trillion won. Individual investors sold 2.1647 trillion won. Program trading showed a net buying position of 1.1503 trillion won combining arbitrage and non-arbitrage transactions.
Buy-Side Circuit Breaker Triggers at 12:41 PM
A buy-side circuit breaker was triggered on the securities market at 12:41 PM on the 21st, one day after a sell-side circuit breaker activation. This marked the 19th buy-side circuit breaker event this year. The mechanism activates when the price of the KOSPI 200 futures contract with the highest trading volume on the previous trading day rises 5% or more and sustains that level for one minute. Sell-side circuit breakers have been triggered 20 times this year.
Samsung Biologics Acquires Polypeptide for 2.7 Trillion Won
Samsung Biologics announced on the previous trading day that it decided to acquire Swiss peptide contract development and manufacturing organization (CDMO) Polypeptide for 2.7 trillion won. The acquisition signals Samsung Biologics' full-scale entry into the global obesity treatment drug CDMO market, attracting buying interest that pushed the stock up over 4% on the 21st. Samsung C&T, which holds a 43.06% stake in Samsung Biologics, surged 8.19% to close at 343,500 won.
KOSDAQ Rises 0.49% Amid Divergent Sector Performance
The KOSDAQ index gained 3.70 points (0.49%) to close at 753.34 on the 21st. After opening in positive territory, the index briefly dipped into negative territory immediately after the opening bell, mirroring the KOSPI's movement. It stabilized in positive territory during the afternoon session, marking a two-day gain. Individual investors were the sole net buyers in the KOSDAQ market, purchasing 139.1 billion won. Foreign investors and institutions sold 140.9 billion won and 6.2 billion won respectively. Among the top 15 stocks by market capitalization, most closed higher, though individual stock performance varied significantly.
Kolon TissueGene Plunges 29.90% After US Phase 3 Trial Failure
Kolon TissueGene announced on the previous trading day that its cell and gene therapy product 'TG-C' for knee osteoarthritis failed to demonstrate efficacy in the primary results of its US Phase 3 clinical trial. The stock plummeted 29.90% to close at 42,900 won on the 21st, deteriorating investor sentiment across the biotech sector. Samchundang Pharmaceutical, which had surged to its daily price limit the previous day after receiving a Pre-ANDA response letter from the US Food and Drug Administration (FDA) for its oral semaglutide generic, dropped approximately 29%. The Pre-ANDA response letter represents the FDA's official review of the company's development strategy and does not constitute approval.
Rainbow Robotics Gains 9.73% on Samsung Electronics Robotics Unit Creation
Rainbow Robotics rose 9.73% to close at 411,500 won on the 21st, the largest gain among top 10 stocks. Samsung Electronics established a new organizational unit called 'RX (Robotics Experience) Business Promotion Division' on the same day to focus on robotics as a future growth engine, driving buying interest into Rainbow Robotics, a robotics subsidiary. The stock extended gains to 18% intraday before closing at the 9.73% level.
Market Focus Shifts to US Big Tech Earnings Starting with Alphabet on the 23rd
Securities analysts are closely monitoring US Big Tech earnings reports set to begin in earnest this week. Alphabet will kick off major Big Tech second-quarter earnings announcements on the 23rd (local time), followed by other leading technology companies. The market is expected to gauge AI investment trends and potential impacts on Korea's semiconductor sector through these companies' results and estimates. Choi Jae-won, a researcher at Kiwoom Securities, stated, "IT hardware, retail and distribution, and securities sectors are showing profit growth with high year-over-year operating profit growth rates expected. In this earnings season, the direction of recent estimate changes is more important than the growth rate itself."
FAQ
What caused the KOSPI to surge 3.56% on the 21st?
The KOSPI rose 231.68 points to 6747.95 on the 21st, driven by simultaneous buying from foreign investors (614.4 billion won) and institutional investors (over 1.6 trillion won), reversing an intraday decline to the 6440 level shortly after opening.
Why did Kolon TissueGene drop 29.90% on the 21st?
Kolon TissueGene plummeted 29.90% to 42,900 won after announcing on the previous trading day that its cell and gene therapy product 'TG-C' for knee osteoarthritis failed to demonstrate efficacy in the primary results of its US Phase 3 clinical trial.
