Samsung Electronics, SK Hynix Drive Rally with Fresh Highs on Kospi’s Record Surge
The South Korean benchmark stock index, Kospi, surged past the 8,100-point threshold for the first time during intraday trading on Tuesday. This significant rally was fueled by increasing optimism over a potential resolution to the conflict in Iran, as Washington and Tehran signaled progress towards a deal.
Opening strong at 8,070.91, up 2.84 percent from Friday’s close after a public holiday on Monday, the index extended its impressive gains. It reached an intraday high of 8,131.15, breaking its previous record of 8,046.78 set on May 15. By 1 p.m., the Kospi stood at 8,104.01, marking a robust 3.27 percent increase for the session.
Investor sentiment notably improved amidst expectations that the United States and Iran are nearing a ceasefire agreement, with both nations indicating advancements in de-escalation efforts. Reports suggested the two sides were close to extending a ceasefire by 60 days and finalizing a framework agreement aimed at achieving a lasting peace deal.
On the main stock exchange, foreign and institutional investors demonstrated strong buying interest, acquiring approximately 405 billion won ($270 million) and 1.15 trillion won worth of shares, respectively. Conversely, retail investors were net sellers, offloading a net 1.45 trillion won in shares.
Notably, foreign investors, who initially began the day as net sellers post-opening, reversed their trend to become net buyers by press time, halting their selling streak and contributing to the market’s upward momentum.
Leading this robust market rally were the nation’s key semiconductor heavyweights, both reaching new all-time highs. Shares of Samsung Electronics climbed 2.82 percent to 300,750 won, successfully reclaiming the crucial 300,000 won psychological mark. SK Hynix saw an even more significant gain, soaring 6.8 percent to 2.078 million won.
SK Hynix’s performance was particularly historic, as its share price surpassed 2 million won for the very first time during regular trading hours, touching an peak of 2.087 million won.
This surge in buying momentum for the memory chip giants was largely attributed to anticipation surrounding the launch of leveraged exchange-traded funds (ETFs) that track these two prominent stocks, scheduled for Wednesday.
Beyond the chip sector, other significant market players also performed well, with SK Square advancing 0.42 percent and Hyundai Motor showing a strong increase of 4.73 percent.
The secondary Kosdaq market also started positively, opening 2.42 percent higher at 1,189.28. Although it later pared some of its initial gains, it still stood at 1,178.07 by 1 p.m., up 1.46 percent on-session.
The influx of overseas investment into the local stock market also bolstered the South Korean won’s strength against the U.S. dollar. The local currency was quoted at 1,515 won per dollar at the opening of onshore trading, strengthening by 2.2 won from the previous session. By 1 p.m., it had further appreciated to 1,506.33 per greenback.
“During the holiday period when both Korean and U.S. stock markets were closed, major Asian benchmarks with significant exposure to the AI value chain, including Japan’s Nikkei 225, Taiwan’s Taiex, and China’s STAR Market 50 Index, consistently hit new record highs,” stated Lee Sang-yeon, an analyst at Shinyoung Securities.
“Against this backdrop of global AI-driven growth, the Korean stock market is well-positioned to sustain its upward trajectory, showcasing strong competitiveness across the AI value chain, predominantly led by its robust semiconductor industry.”
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