The KOSPI set another all-time record on the 7th. It surpassed 4,600 intraday and closed above 4,550, reaching new heights. The "CES effect" from the world's largest information technology (IT) trade show underway in Las Vegas, along with expectations that U.S. interest rates will be cut more than expected this year, drew in more than 1 trillion won in foreign funds.
The KOSPI ended the day at 4,551.06, up 25.58 points (0.57%). After opening higher, the KOSPI topped 4,600 points early in the session. In the afternoon, as individuals rushed to take profits, the index turned lower. But with foreign funds flowing into large-cap chip stocks such as Samsung Electronics, the index rebounded and set a new all-time high.
Since the new year began, the KOSPI has risen day after day. Large-cap semiconductor stocks such as Samsung Electronics and SK hynix are leading the gains as they hit all-time highs. On the day, foreigners were net buyers of more than 1.2 trillion won on the main board. Individuals, by contrast, moved to take profits en masse. Financial investment (institutions), which aggregates individuals and exchange-traded funds (ETF), had net sales totaling more than 1 trillion won.
As the CES event draws global attention, expectations are rising that the wave of an "artificial intelligence (AI) revolution" could build. Global IT corporations rolled out a slew of new technologies centered on physical AI. In particular, Hyundai Motor Group, which unveiled the Humanoid Robot "Atlas," drew the eyes of investors worldwide.
On the main board that day, group stocks including Hyundai Motor, Hyundai Mobis, Hyundai GLOVIS, and Hyundai AutoEver all rose in unison.
A comment by Federal Reserve (Fed) Governor Steven Myron, a former economic adviser to U.S. President Donald Trump, in an interview that more than a 1 percentage point cut in the benchmark interest rate is needed this year also buoyed investor sentiment. Expectations grew that ongoing accommodative monetary policy could further expand market liquidity.
The KOSDAQ, by contrast, fell. Although the government announced measures late last year to invigorate the KOSDAQ market, their impact on the market appears limited. The concentration of investment funds flowing into the Korean market toward large-cap chip stocks is also cited as a factor behind the KOSDAQ's weakness.
After starting slightly higher, the KOSDAQ turned lower and finished the day down 8.58 points (0.90%) at 947.39 in transaction.