It was a day when the KOSPI once again rewrote history. In just one day, it broke through 5,400 points and then 5,500 points in succession, setting a new record high. The KOSPI closed above 5,500 points for the first time in six trading days since it surpassed the 5,300 level on the close on the 4th.
On the 12th, the KOSPI rose 167.78 points (3.13%) from the previous day to close at 5,522.27. The KOSPI opened the day at 5,425.39, up 70.90 points (1.32%) from the previous day. It was the first time the KOSPI crossed the 5,400 level. It then widened its gains to break through the 5,500 level intraday and held the uptrend into the close.
Foreigners and institutions led the market. Foreign investors bought more than 3 trillion won net, while institutions were also net buyers of 1.3716 trillion won. Most of the institutional flow came from financial investment firms, where purchases of exchange-traded funds (ETF) by individuals are reflected. Financial investment firms were net buyers of more than 1 trillion won. By contrast, individuals were net sellers of more than 4.4 trillion won.
Overnight, the three major U.S. indexes finished slightly lower, but the KOSPI showed strength. As U.S. nonfarm payrolls for January beat market expectations, hopes for rate cuts receded, and U.S. stocks ended mixed.
Lee Kyung-min, an analyst at Daishin Securities, said, "Today's strength in the domestic stock market shows the center of gravity shifting from reliance on monetary policy to fundamentals based on earnings."
Large-cap semiconductor stocks led the KOSPI again today. The move is seen as largely driven by tailwinds from U.S. semiconductor stocks. Micron surged more than 9% after dismissing concerns over failure to supply high bandwidth memory (HBM4) and on price target hikes from major investment banks (IB) including Morgan Stanley. The Philadelphia Semiconductor Index, made up of artificial intelligence (AI) and semiconductor-related stocks, rose 2.28%.
Samsung Electronics particularly stood out. After hitting the "170,000 won Samsung" mark early in the session, Samsung Electronics jumped more than 7% intraday, pulling up "KOSPI 5500." SK hynix rose more than 3%.
Lee Jae-won, an analyst at Shinhan Investment & Securities, said he revised the title of his report in response to the surge in Samsung Electronics. In a report titled "With Samsung Electronics' sudden acceleration, 5,400 points—no, 5,500 points breached," Lee said, "With AI performance improving at a startling pace, how could semiconductor demand decrease?" and explained, "Better-performing AI requires more semiconductors."
Financial and holding company-related stocks also stood out. Korea Investment Holdings rose more than 8% by the close, and Shinhan Financial Group gained 5%. Analyst Lee Kyung-min explained, "Shares rose as assessments of shareholder-return policies during earnings season and expectations for the February extraordinary National Assembly, where the third amendment to the Commercial Act is slated for handling, were reflected."
Meanwhile, the KOSDAQ rose 11.12 points (1.00%) from the previous day to close at 1,125.99. The KOSDAQ opened at 1,122.55, up 0.69% (7.68 points) from the previous day, turned lower, then rebounded.
In the KOSDAQ market, individuals were net buyers of 85.2 billion won and institutions were net buyers of 69.3 billion won. Among institutions, financial investment firms bought 77.8 billion won. Foreign investors were net sellers of 105.3 billion won.
Analyst Lee Jae-won said, "Secondary battery stocks were strong, but some profit-taking occurred in biotech," adding, "With the holiday ahead, volatility eased and overall stock-by-stock swings narrowed."