The domestic stock market set a new historical peak as soon as trading opened on the 12th. The KOSPI started the session above the 5,400 mark for the first time on record.
Buying accelerated around semiconductors and core strategic industries, forcefully pushing the index higher. Market experts said, "As the index has entered a new price range, investors should watch for increased volatility and respond to a sector-rotation market with selective positioning."
As of 9:07 a.m., the KOSPI was up 65.86 points (1.23%) at 5,420.35 from the previous day. The KOSPI opened at 5,425.39, up 70.90 points (1.32%) from the previous day, once again hitting a record high.
The main board is being led by individual investors. Individuals are net buyers of 87.3 billion won, while foreigners and institutions are net sellers of 55.9 billion won and 39.0 billion won, respectively.
Large-cap stocks on the main board are mixed. Samsung Electronics and SK hynix are up in the 2% range, and LG Energy Solution, Samsung Biologics, and SK Square are also rising. In contrast, Hyundai Motor, Kia, KB Financial, and Doosan Enerbility are declining.
At the same time, the KOSDAQ was up 3.61 points (0.32%) at 1,118.48 from the previous day. The KOSDAQ started the session at 1,122.55, up 0.69% (7.68 points) from the previous day.
The KOSDAQ market is being led by individual investors. Individuals are net buyers of 159.1 billion won, while foreigners are net sellers of 118.6 billion won and institutions 17.8 billion won.
Large-cap stocks on the KOSDAQ are also mixed. EcoPro, Alteogen, EcoPro BM, ABL Bio, HLB, and LigaChem Biosciences are falling, while Rainbow Robotics, Kolon TissueGene, and LEENO Industrial are rising.
The KOSPI appears to have been buoyed by a surge in U.S. semiconductor-related stocks. Overnight, the three major U.S. indexes finished slightly lower. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed down 66.74 points (0.13%) at 50,121.40. The Standard & Poor's (S&P) 500 fell 0.34 point (0.00%) to 6,941.47, and the Nasdaq composite lost 36.01 points (0.16%) to 23,066.47.
January U.S. nonfarm payroll gains exceeded market expectations and were a positive factor, but they did not overcome market skepticism. In addition, the solid employment data appeared to temper expectations for interest rate cuts by the Federal Reserve (Fed).
However, the Philadelphia Semiconductor Index, composed of artificial intelligence (AI) and semiconductor-related stocks, jumped more than 2%. The index has rebounded nearly 10% over the past four sessions.
Lee Seong-hun, an analyst at Kiwoom Securities, said, "The domestic market will start higher, reflecting the sharp rise in U.S. semiconductor stocks," adding, "Rather than a market led by a single leading sector recently, a clear pattern of sector rotation is unfolding."