The KOSPI index closed higher as expectations for a trend rebound in the domestic stock market added to the momentum from strong U.S. technology stocks overnight. However, after reaching the 2500 mark early in the session, the KOSPI index lost some of its gains in the afternoon and failed to maintain the 2500 level. The rise in large-cap semiconductors, driven by the world’s largest consumer electronics and IT exhibition 'CES 2025', was limited by a decline after remarks made by Jensen Huang, CEO of NVIDIA.
On the day, the KOSPI index recorded a rise of 3.46 points (0.14%) to close at 2492.10. The index started the day at 2513.49, up 24.85 points (1.0%) from the previous day, and recovered the 2500 mark for the first time in about three weeks since Dec. 16 of last year, but the upward momentum weakened in the afternoon.
In the Korea Securities market, foreign investors recorded a net purchase of 157.4 billion won, maintaining a buying advantage for three consecutive trading days. Individual and institutional investors sold net amounts of 203 billion won and 4.27 billion won, respectively, engaging in profit-taking.
Overnight, U.S. technology stocks showed strength, and large-cap semiconductors such as Samsung Electronics and SK Hynix, which had been strong on expectations for 'CES 2025', reversed to a decline in the afternoon. The drop in semiconductor stocks appears to have been triggered by Jensen Huang's CEO announcement. Jensen Huang unveiled NVIDIA's latest AI accelerator, the GeForce RTX 50 series, stating that it is equipped with Micron's GDDR7 memory, not domestic products.
Accordingly, Samsung Electronics rose to 57,300 won during the session but reversed to close down 0.89% at 55,400 won. SK Hynix, after touching the 200,000 won mark for the first time in two months shortly after the opening, quickly turned back to decline, finishing down 2.40% at 195,000 won. In contrast, Hanmi Semiconductor recorded a 1.81% increase to close at 101,300 won.
In response to President-elect Donald Trump's suggestion of increased cooperation with allies in the naval vessel sector, shipbuilding stocks, including Hanwha Ocean, HJ Heavy Industries, HD Korean Shipbuilding and Marine Engineering, and HD Hyundai Marine Solutions, showed strength. Hanwha Engine rose 5.63% during the session, marking a new high of 19,690 won within a year.
Expectations surrounding the signing of the second export contract with Poland fueled a rise for Hyundai Rotem. Defense stocks like Hanwha Systems and Hanwha Aerospace, as well as theme stocks regarding the reconstruction of Ukraine such as Samboo Construction, also rose.
Lee Kyung-min, a researcher at Shinhan Investment Corp., noted, 'As President-elect Trump expressed intentions to strengthen naval power through allies and to contain China, expectations for benefits have arisen. The shipbuilding sector, including Hanwha Ocean, which is actively entering the U.S. Navy ship maintenance, repair, and overhaul (MRO) market following the acquisition of a U.S. shipyard, has shown strength.'
The KOSDAQ index rose 0.33 points (0.05%) to close at 718.29. The index started the day at 719.68, up 1.72 points (0.24%) from the previous day. Individual investors alone recorded net purchases of 102.5 billion won, defending against the index's decline, while foreign and institutional investors sold net amounts of 11 billion won and 70.2 billion won, respectively.
In the KOSDAQ market, pharmaceutical and biotech stocks showed strength ahead of JP Morgan's healthcare conference. Alteogen, LigaChem Biosciences, Samchundang Pharmaceutical, HUGEL, Pharmarise, and Peptron all closed higher. With the rise in shipbuilding stocks, companies related to shipbuilding materials like ILSEUNG, Hyundai HYMS, and Seongkwang Bend also rose simultaneously.
With the strong performance of U.S. AI semiconductors and the approach of CES 2025, stocks related to HB Technology and YCCHEM also finished strongly. After a drop due to news of a new platform launch from Kakao Entertainment the previous day, Dear U rebounded as analysis indicated limited potential for artist departures.
Lee Jae-won, a researcher at Shinhan Investment Corp., stated, 'The dollar index still exceeds 108 points, and the yield on 10-year government bonds is also in the 4.6% range,' adding, 'We need to pay attention to President Trump's remarks before his inauguration.' On that day, in the Seoul foreign exchange market, the won-dollar exchange rate recorded a decline of 16.2 won to close at 1453.5 won.