South Korean Stocks Soar to Record High, Led by Semiconductor Giants
South Korean equity markets experienced a significant boost for the fourth consecutive session on Wednesday, with the benchmark Korea Composite Stock Price Index (KOSPI) surpassing the 8,200-point mark to achieve a new record peak. This remarkable rally was predominantly fueled by the exceptional performance of leading semiconductor firms, Samsung Electronics and SK hynix. Concurrently, the local currency strengthened against the US dollar.
KOSPI Hits New Peak Amid Robust Trading
The KOSPI surged by 181.19 points, marking a substantial 2.25 percent gain, to close at an unprecedented 8,288.7. Throughout the day, the index even touched an intraday high of 8,457.09. The trading day began with an impressive 2.42 percent jump, quickly extending gains to breach the 8,450-point level in early hours, prompting the issuance of a buy-side sidecar to temporarily halt Kospi futures trading for five minutes.
This positive momentum mirrored overnight trends on Wall Street, where the S&P 500 and Nasdaq indices reached all-time closing highs, propelled by a surge in global chip stocks. Notably, chipmaker Micron Technology saw its shares climb by 19 percent, achieving a market valuation of $1 trillion for the first time.
Trading volume in South Korea was robust, with 615.2 million shares exchanged, valued at an substantial 55.8 trillion won ($37.2 billion). However, the market breadth showed a clear disparity, as losers significantly outnumbered winners, with 823 declining stocks against only 75 advancing.
Semiconductor Stocks Lead the Charge: Samsung Electronics & SK Hynix Shine
Individuals were net purchasers, acquiring 403.4 billion won worth of shares, while institutions bought a net 189.6 billion won. These domestic inflows partially offset net foreign selling of 448.4 billion won, marking the 15th consecutive session that foreign investors have been net sellers in the South Korean market.
Analysts highlighted the pivotal role of the semiconductor sector. Kim Seok-hwan, an analyst from Mirae Asset Securities, noted, “The two biggest semiconductor shares led the rally, while other semiconductor-related shares experienced profit-taking.”
Samsung Electronics, a global tech giant, advanced by 2.68 percent to 307,000 won. SK hynix, another key player in the chip industry, saw its shares soar by 9.31 percent to 2.24 million won. This impressive performance allowed SK hynix to become only the second South Korean company to achieve a market capitalization exceeding 1,500 trillion won ($1 trillion).
Further demonstrating the strength in the tech ecosystem, Samsung Electro-Mechanics, an electronic components manufacturing affiliate of Samsung Electronics, rose 3.69 percent to 1.63 million won. SK Square, an AI investment firm, also recorded a strong gain, surging 8.04 percent to 1.27 million won.
Broader Market Mixed as Other Sectors Face Profit-Taking
Despite the semiconductor sector’s stellar performance, a majority of shares across other industries concluded the day lower, indicating a mixed sentiment across the broader market.
Leading carmaker Hyundai Motor saw its shares decline by 1.16 percent to 681,000 won, and its affiliate Kia dropped by 1.38 percent to 164,700 won. Steel industry giant POSCO Holdings tumbled 4.19 percent to 423,500 won, while internet services firm Kakao retreated 2.29 percent to 40,500 won.
In the retail sector, Lotte Shopping declined 3.97 percent to 152,200 won. Cosmetics manufacturer Cosmax also faced a downturn, falling 2.87 percent to 176,200 won. This widespread decline in other sectors suggests investors may have been reallocating capital or taking profits after recent gains.
