The Korea Composite Stock Price Index (KOSPI) once again set an all-time high. With foreigners continuing to buy, centered on Samsung Electronics and SK hynix, the No. 1 and No. 2 stocks by market capitalization, the upward trend was able to continue. The results of the Federal Open Market Committee (FOMC) regular meeting in September are expected to determine the short-term market mood.
The KOSPI closed at 3,449.62 on the 16th. It rose 42.31 points (1.24%) from the previous day, renewing the record closing high for the fifth straight session. It climbed as high as 3,452.5 intraday, reaching the 3,450 level for the first time.
In the KOSPI market, foreigners net bought 1.7029 trillion won. It was the largest one-day net purchase since March last year. Institutions also showed a net buy of 78.8 billion won, while individuals net sold 1.7642 trillion won.
The KOSPI has closed higher for 11 consecutive sessions since 2nd. The KOSPI has risen for 11 straight sessions only five times since the 1990s: June 1999 during the dot-com bubble, April 2006 during China's high-growth period, July 2009 during the post-global financial crisis recovery, and September 2019 when the first Trump administration reached a U.S.-China trade deal. The longest winning streak is 13 sessions, set in September 2019.
Samsung Electronics and SK hynix, the two flagship KOSPI stocks, led the index higher. Samsung Electronics shares ended the day at 79,400 won, putting "80,000 electronics" within sight for the first time in about a year. SK hynix jumped to as high as 354,000 won intraday, once again rewriting its all-time high since joining SK Group.
On the day, the contributions of Samsung Electronics and SK hynix to the KOSPI's gain were 19.22 points and 13.86 points, respectively. The two stocks accounted for 78% of the KOSPI's advance of 42.31 points.
LG Display also posted a double-digit share-price gain on news that it will supply Apple's iPhone panels instead of China's BOE. Defense stocks such as LIG Nex1, Hanwha Systems, and Hanwha Aerospace were also strong amid geopolitical tensions in the Middle East and Europe.
However, across the broader market, the number of decliners was 571, nearly twice the 298 advancers. Profit-taking emerged in stocks that had surged. Nongshim and ORION, which had risen on the popularity of Netflix's animated film "K-pop Demon Hunters," fell about 4% and 2%, respectively, on the day.
Autos also struggled. Hyundai Motor was flat, and Kia slipped slightly. Unlike the U.S. tariff on Japanese cars, which was cut from 27.5% to 15% starting today, Korea is burdened by the fact that it is subject to a 25% tariff because follow-up tariff negotiations with the United States have stalled.
The KOSDAQ index ended at 851.84, down 0.85 points (0.1%) from the previous day. In the KOSDAQ market, individuals net bought 271.9 billion won, supporting the index. Foreigners and institutions net sold 213.7 billion won and 45.1 billion won, respectively.
Among the top market-cap stocks on the KOSDAQ, Alteogen, ECOPRO BM, and PharmaResearch rose. Peptron, Ecopro, and Rainbow Robotics shares ended regular-session transactions at lower prices than the previous day.
The FOMC outcome due early morning on 18th Korea time is expected to determine the market's short-term direction. The key is whether the Federal Reserve (Fed) will present a path of benchmark rate cuts that meets market expectations.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, said, "While expectations for liquidity and a major uptrend in the second half are strengthening, the unusual consecutive gains and herd behavior warrant caution," adding, "With the September FOMC ahead, investors should refrain from chasing gains."
As the domestic stock market has risen breathlessly, the momentum to climb further has also become more important. Lee Jae-won, a researcher at Shinhan Investment Corp., said, "Progress in negotiations on Korea-U.S. investment funds and corporate earnings for the third quarter (July–September), which will start to be released next month, are likely to serve as additional catalysts," adding, "Given that the KOSPI has historically continued a rally after setting a new high, it is worth focusing on stocks expected to deliver strong earnings."