On the 20th, the KOSPI index recovered the 4,000 level for the first time in three days on the back of Nvidia's strong earnings. Large-scale buying by foreign investors and institutions lifted the index.
The KOSPI index closed at 4,004.85, up 75.34 points (1.92%) from the previous day. After falling to the 3,900 level on the 18th, the KOSPI reclaimed 4,000 in three trading days. It rose as high as 4,059.37 intraday but gave back a bit of the gains in the afternoon.
The buying streak by institutions and foreigners led the index higher. In the stock market, institutions and foreigners net bought 757.2 billion won and 641.3 billion won, respectively. Individuals alone net sold 1.3871 trillion won.
In particular, domestic semiconductor blue chips outperformed on news that Nvidia, which leads the artificial intelligence (AI) semiconductor market, set a record high for third-quarter revenue. Samsung Electronics jumped 4.25%, while HANMI Semiconductor and SK hynix rose 2.32% and 1.60%, respectively.
Along with that, expectations for expanding power demand also grew. #Cheil Electric rose 7.21%, and power names such as LS ELECTRIC (6.53%) and HD Hyundai Electric (4.09%) were strong.
Among other top market-cap stocks, Doosan Enerbility (4.44%), HD Hyundai Heavy Industries (1.57%), Hanwha Aerospace (1.22%), and LG Energy Solution (0.80%) also gained. KB Financial Group (-0.82%) and Hyundai Motor (-0.76%), among others, inched down.
Lee Jae-won, an analyst at Shinhan Investment & Securities, said, "Concerns about AI overvaluation subsided after Nvidia reported strong third-quarter results," and added, "On the KOSPI, Samsung Electronics and SK hynix climbed together and helped drive the index higher."
The KOSDAQ index also rose more than 2% on the day. The KOSDAQ closed at 891.94, up 20.62 points (2.37%) from the prior trading day. Foreign investors and institutions in the KOSDAQ market net bought 182.5 billion won and 13.1 billion won, respectively. Only individuals sold 122.9 billion won.
Top KOSDAQ market-cap stocks all flashed red. Peptron surged 15.4%, and PharmaResearch (6.71%), EcoPro (4.79%), ABL Bio (4.36%), Sam Chun Dang Pharm (2.99%), LigaChem Biosciences (2.42%), Alteogen (2.39%), Rainbow Robotics (1.82%), EcoPro BM (1.18%), and HLB (0.11%) were also on the rise.
The analyst said, "We need to watch whether foreign inflows return, and whether the United States cuts interest rates is also an important variable."