The KOSPI broke through the 5,700 mark early in the session and is now eyeing 5,800. With semiconductors, which drove the index higher the previous day, taking a breather, rotation is appearing into shipbuilding, defense, nuclear power, securities, and insurance.
By investor type, foreigners are selling for a third straight session, while retail and institutional buying is propelling the index higher.
As of 11:54 a.m., the KOSPI was up 81.13 points (1.43%) from the previous session at 5,758.38. The index opened higher at 5,696.89 from the previous day, extended gains to as high as 5,766.44, and has been seesawing around the 5,750 level.
Shipbuilding, defense, and nuclear power stocks are strong. Shipbuilders are rallying after the White House released the American Maritime Action Plan (AMAP), with buying concentrating and Hanwha Ocean leading HD Hyundai Heavy Industries and HD Korea Shipbuilding & Offshore Engineering, all up about 3%.
Defense stocks are strong amid prolonged U.S.-Iran nuclear talks and speculation the U.S. military could launch airstrikes on Iran as early as this weekend. Hanwha Aerospace is surging more than 5%, while Hanwha Systems (8.93%), LIG Nex1 (4.1%), Hyundai Rotem (3.1%), and Korea Aerospace Industries (KAI) (0.17%) are also gaining.
Nuclear power plays are strong on expectations that Team Korea's overseas order momentum will expand beyond the Czech Republic to the Middle East and the United States, with Doosan Enerbility leading Hyundai Engineering & Construction (3.7%) and KEPCO E&C (10.36%).
Securities stocks remain strong on expectations for the passage of the third amendment to the Commercial Act centered on the KOSPI rally and share cancellations. With Mirae Asset Securities, Korea Investment Holdings, and Kiwoom Securities already rising sharply, buying is flowing into small and mid-sized players such as SK Securities and Sangsangin Investment & Securities as they try to catch up.
Buying is also pouring into insurance stocks. With Mirae Asset Life Insurance, Lotte Non-Life Insurance, and Heungkuk Fire&Marine Insurance trading at the upper limit, Hanwha Life Insurance (23.82%), Samsung Life Insurance (3.35%), and Hanwha General Insurance (21.8%) are also strong.
SK hynix and Samsung Electronics, which led the market the previous day, were weak early in the session, but SK hynix drew strong buying and broke through the 930,000-won level intraday to hit a 1-year high. Samsung Electronics is down slightly, trading around 189,000 won.
In the KOSPI market, retail investors, who sold 860 billion won the previous day, are net buying 212.2 billion won. Institutions are also buying, with the national pension fund purchasing 118.2 billion won, and the financial investment window, which tallies retail exchange-traded fund (ETF) flows, showing a net buy of 396.1 billion won. Foreigners are selling for a third straight session: 922 billion won on the 13th, 939.6 billion won on the 19th, and 753.7 billion won on the 20th.
By contrast, at the same time the KOSDAQ was down 3.73 points (0.32%) from the previous session at 1,156.98. After surging more than 4% the previous day, the index is weaker as foreigners cash in 186 billion won in profits.