The KOSDAQ index is nearing the 900-point level after rebounding 13.0% from its September low, with institutional buying, shifting flows from large-cap stocks and policy expectations supporting the recovery. The Korea Exchange said the index closed at 893.29 on October 2, down 1.00 point, or 0.11%, after falling to 790.21 on September 3. The rebound followed a rise into the 820-point range in mid-September, a close at 855.91 on September 30 and a 38.38-point jump on October 1 to 894.29. Analysts said the earlier decline reflected valuation compression caused by weaker investor sentiment rather than a deterioration in earnings expectations. Institutional investors net-bought 1.0115 trillion Korean won from September 1 to October 2, led by investment trusts and pension funds, while individuals bought 473.1 billion won and foreign investors sold 1.4155 trillion won. Investment trusts accounted for 1.5621 trillion won of net purchases, including 1.333 trillion won on September 10, while pension funds bought 226.4 billion won. Policy changes, including stricter delisting requirements, a planned KOSDAQ segment restructuring and ETFs linked to its proposed Select segment, are also being watched. Analysts cautioned that foreign buying and the market’s response to the restructuring plan will be important to sustaining the rebound.