Kospi stages dramatic late-session reversal after tumbling more than 3% at open

The Kospi tumbled more than 3 percent at the open Monday before staging a dramatic late-session reversal to reclaim the 5,760 level.

Bargain hunters moved into stocks that had fallen sharply in recent sessions, even as concerns over the profitability of AI infrastructure investment continued to weigh on sentiment. Secondary battery and pharmaceutical and biotech shares led the rebound, while the Kosdaq reclaimed the 800 mark for the first time in three sessions.

The Kospi closed up 99.96 points, or 1.76 percent, at 5,768.01, according to Korea Exchange, marking its second consecutive session of gains. The index opened down 179.64 points, or 3.17 percent, at 5,488.41 and swung between gains and losses through the afternoon. With about 30 minutes left in the session, however, it turned sharply higher and finished at its best level of the day.

Foreign investors returned to net selling on the Kospi after a one-session absence, but their net sales were limited to 36 billion won ($26.8 million). When trades on the Nextrade platform are included, foreigners were actually net buyers of more than 600 billion won. Retail investors were heavy net sellers at 1.09 trillion won, while institutions posted net purchases of 577 billion won.

While doubts about the profitability of AI infrastructure investment continued to hang over the market, buying by investors who judged the index to have hit a bottom appeared to lift prices. Samsung Electronics and SK hynix both opened sharply lower before turning positive, closing up 1.16 percent and 0.39 percent, respectively.

Among other large-cap stocks, SK Square fell 0.51 percent, Samsung Electro-Mechanics dropped 1.52 percent and Samsung C&T slipped 0.52 percent. Hyundai Motor, Samsung Biologics, KB Financial Group and Samsung Life Insurance all reversed early losses to close up 4.49 percent, 9.94 percent, 1.69 percent and 2.52 percent, respectively.

Secondary battery-related shares surged on growing expectations for North American ESS demand. Samsung SDI jumped 11.70 percent, LG Energy Solution gained 7.20 percent, LG Chem rose 8.46 percent and L&F advanced 7.26 percent, with Posco Future M also posting a sharp gain.

The Kosdaq also closed higher, finishing up 14.11 points, or 1.78 percent, at 808.89 — reclaiming the 800 level for the first time since Wednesday.

The index opened down 21.72 points, or 2.73 percent, at 773.06 and fluctuated before turning positive during the session, mirroring the Kospi's trajectory. Foreign investors were net sellers of 143.7 billion won on the Kosdaq, while retail investors net bought 64 billion won and institutions net bought 67 billion won.

Among top Kosdaq stocks by market cap, secondary battery names Ecopro and Ecopro BM stood out with gains of 11.19 percent and 8.33 percent, respectively. Rainbow Robotics surged 7.23 percent, while biotech stocks Alteogen and HLB closed up 2.14 percent and 3.00 percent.

The won edged up slightly against the dollar. As of 3:30 p.m. in the Seoul foreign exchange market, the won-dollar rate stood at 1,330.3 won, strengthening 1.1 won from the previous session.