South Korean stock indices diverge: KOSPI pulls back, KOSDAQ surges over 4% triggering mechanism

(1) Today, the trends of the South Korean KOSPI and KOSDAQ diverged significantly: KOSPI entered a correction after a substantial increase in the previous trading day, while KOSDAQ rose by more than 4% intraday, triggering a pause mechanism for buy-side program trading. (2) Regarding capital flows, individual investors in the KOSPI market had a net purchase of 6.43 trillion KRW, while foreign investors and institutions had net sales of 3.87 trillion KRW and 2.66 trillion KRW, respectively; in the KOSDAQ market, individuals and institutions had net purchases of 59.8 billion KRW and 162.9 billion KRW, while foreign investors had a net sale of 230.5 billion KRW. (3) Samsung Electronics and SK Hynix surged 26.81% and 29.95%, respectively, on the 31st of last month, but both closed down about 8% today. Analysts pointed out that foreign capital took profits due to the excessive short-term gains, leading to a market reversal. Funds flowed from semiconductors to sectors such as pharmaceuticals, biotechnology, and robotics, boosting the growth board and driving up the share prices of several companies, including Peptron.