The KOSPI index set a record high for the second straight session since the market opened this year. On the 5th, the KOSPI surged more than 3% to top the 4,450 level, and the KOSDAQ rose more than 1% to break through 950 for the first time in four years.
Amid growing optimism about the semiconductor cycle ahead of Samsung Electronics' earnings release, a stable won-dollar exchange rate drew a large influx of foreign investor funds.
The KOSPI ended the day at 4,457.52, up 147.89 points (3.43%) from the previous session. Opening at 4,385.92, up 76.29 points (1.77%) from the prior close, the KOSPI crossed the 4,400 mark for the first time ever during trading on the back of foreign buying.
In the main board, foreign investors bought 1.92 trillion won, lifting the market. Retail investors and institutions were net sellers by 1.38 trillion won and 590 billion won, respectively.
Despite an overnight U.S. operation to arrest Venezuela's president, the domestic stock market extended gains. Lee Kyung-min, a researcher at Daishin Securities Co., said, "The operation was conducted without U.S. military casualties, and Venezuela's acting president Delsi Rodriguez accepted cooperation with the United States, lowering the likelihood of further clashes," and noted, "Venezuela's political situation is also expected to stabilize."
All constituents within the top 25 by market cap on the main board finished higher, showing strength. With large-cap shares in key sectors rising, LG Energy Solution (2.91%), SK Square (6.12%), Celltrion (3.46%) and Shinhan Financial Group (3.26%), among others, advanced.
Semiconductor bellwethers Samsung Electronics and SK hynix continued their record-high rally. The two stocks each surpassed 800 trillion won and 500 trillion won in market capitalization, solidifying their positions as semiconductor leaders.
Samsung Electronics rose 7.47% on growing expectations for an earnings surprise ahead of its quarterly results on the 8th, settling into the "130,000 won Samsung." It jumped intraday to 138,600 won, flirting with the 140,000-won level. SK hynix also closed up 2.81% on expectations of improved results from a memory upcycle. Early in the session, it touched "700,000-won hynix," setting a record high.
Among nuclear power names, shares related to small modular reactors (SMR) surged. The gains were largely driven by a rally of more than 15% and 8% in NuScale Power and Oklo, respectively, on the New York market on expectations that the U.S. Department of Energy (DOE) will execute its SMR support budget. In Korea, with the possibility that SMR and other technologies will be designated new national strategic technologies, Doosan Enerbility (10.64%), Hyundai E&C (7.25%), KEPCO E&C (4.68%) and BHI (7.97%) all jumped.
Defense stocks also caught a tailwind. The moves were attributed to heightened geopolitical tensions from the ouster of Venezuela's President Nicolas Maduro and North Korea's ballistic missile launch. Hanwha Aerospace closed up more than 6%, reclaiming "emperor stock (1 million won per share)" status for the first time in about two months. Shares grouped as defense, including Korea Aerospace Industries (6.51%), LIG Nex1 (6.72%), Hanwha Systems (4.88%) and Hyundai Rotem (2.79%), also rose.
Lee Jae-won, a researcher at Shinhan Investment Corp., said, "Starting with TSMC's December results and Samsung Electronics' preliminary results on Jan. 8, earnings releases by major corporations such as SK hynix, ASML and Lam Research will continue through the end of the month," adding, "In January, it is necessary to focus on earnings momentum and guidance effects."
The KOSDAQ index closed at 957.50, up 11.93 points (1.26%) from the previous session. It was the highest close in about four years since Jan. 20, 2022 (958.7). Opening at 948.56, up 2.99 points (0.32%) from the prior close, the KOSDAQ widened gains on increased net buying by retail investors.
On the KOSDAQ market, retail investors and institutions were net buyers of 93 billion won and 39 billion won, respectively. Foreign investors sold a net 120 billion won.
Of the top 10 by market cap on the KOSDAQ, nine stocks rose. Except for Rainbow Robotics (-3.44%), large caps such as Alteogen (2.52%), EcoPro BM (2.89%), ABL Bio (8.44%) and HLB (1.89%) all gained.
The won-dollar exchange rate stood at 1,443.8 won as of 3:30 p.m. in the Seoul foreign exchange market, up 2 won from the previous close.