The KOSPI index broke through the 4,200 level, setting another record high. It came just one trading day after it topped 4,100 on the previous week. Even as foreigners showed net selling, large-cap chip stocks such as Samsung Electronics and SK hynix surged, leading the index rally. Investor sentiment was also buoyed by a series of earnings surprises during the third-quarter reporting season.
On the 3rd, the KOSPI index closed at 4,221.87. It rose 2.78% (114.37 points) from the previous trading day. In the main bourse, individuals and institutions were net buyers of 651.2 billion won and 185.4 billion won, respectively, while foreigners were net sellers of 796.4 billion won.
Most of the top market-cap stocks on the main bourse ended higher. Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "Although this year's KOSPI index gain has exceeded 70%, earnings estimates for listed companies keep being revised up," adding, "Most sectors rose, led by semiconductors, electrical equipment and machinery, shipbuilding, defense, securities, and holding companies."
Among them, gains in large-cap chip stocks stood out. Samsung Electronics and SK hynix each hit an all-time high. Samsung Electronics closed at 111,100 won, and SK hynix also set another all-time high at 620,000 won.
A warm breeze appears to be continuing in the domestic stock market after the Asia-Pacific Economic Cooperation (APEC) summit wrapped up on the previous week. In particular, the artificial intelligence (AI) frenzy is gaining momentum in the domestic market after Nvidia CEO Jensen Huang held a "chicken gathering" with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun and emphasized cooperation with Korean corporations.
Lee Kyung-min, a researcher at Daishin Securities Co., said, "On expectations for capital expenditures driven by AI data center expansion, semiconductors, electrical equipment, and clean power generation sectors are all showing strong gains," adding, "Also, robots and software stocks, which saw growth expectations flow in related to AI data center construction, rose and helped lead the KOSPI higher."
In particular, SK hynix, which recorded "600,000-nix" on the day, even saw a brokerage report presenting a target price of 1 million won.
However, as a few large caps drive the market rally, concerns are growing about concentration. On the day, about 250 KOSPI stocks rose, while the number of decliners reached 650.
The KOSDAQ index also posted a sharp gain on the day. It closed at 914.55, up 1.57% (14.13 points) from the previous trading day. In the KOSDAQ market, individuals alone were net sellers of 342.0 billion won, while foreigners and institutions were net buyers of 388.8 billion won and 3.3 billion won, respectively.
Top KOSDAQ market-cap stocks ended mixed. Rainbow Robotics jumped 11%, and Alteogen, EcoPro BM, EcoPro, ABL Bio, Sam Chun Dang Pharm, and LigaChem Biosciences rose. In contrast, HLB, Peptron, and PharmaResearch finished lower.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "As the Jensen Huang effect continues, the AI value chain showed strength," adding, "Robotics-related stocks that Huang directly signaled cooperation with rose sharply."
In addition, entertainment stocks rose for the first time in a while on expectations that the ban on Korean content in China will be lifted. After news broke that Park Jin-Young, JYP's chief producer and co-chair of The Presidential Committee on Popular Culture Exchange, met with Chinese President Xi Jinping, JYP Ent. closed up more than 5%. SME also rose more than 1%.