The KOSPI overcame external headwinds to break through the 5,700 level. Overnight, U.S. stocks weakened on geopolitical risks and concerns about private credit investor Blue Owl's artificial intelligence (AI) exposure, but the domestic market shook off the impact, opened higher, and is expanding gains.
In contrast, the KOSDAQ, which surged more than 4% the previous day, started lower as it took a breather.
As of 9:16 a.m., the KOSPI index was trading at 5,715.45, up 38.2 points (0.67%) from the previous session. The index opened higher at 5,696.89 from the day before and is widening its intraday gains.
Individuals who had been net sellers the previous day returned. Individuals are net buying 190.1 billion won, lifting the index. Foreigners and institutions turned to "sell" with net sales of 162.3 billion won and 16.8 billion won, respectively.
Brokerages are raising the upper bound for the KOSPI. Korea Investment & Securities Co. set a KOSPI target of 4,900–7,250 points in a report the same day. Kim Dae-joon, a researcher at Korea Investment & Securities Co., said, "With the semiconductor outlook revised up thanks to the development of the AI industry, EPS has risen 40.5% from the start of the year," and explained, "A semiconductor-led rally will continue in the first half."
In the KOSPI market, investor sentiment is flocking to power stocks and shipbuilders. Doosan Enerbility is surging 6%, while Korea Electric Power Corporation and HD Hyundai Electric are also rising. Hanwha Ocean, HD Korea Shipbuilding & Offshore Engineering, and Samsung Heavy Industries are up about 2%.
Samsung Electronics and SK hynix, which led the KOSPI higher the previous day, are slipping from slight gains into losses.
Securities and financials are also staying strong amid the record-setting rally. Mirae Asset Securities (2.27%), Meritz Financial Group (4.22%), KB Financial (1.68%), and Woori Financial Group (1.52%) are among the gainers.
At the same time, the KOSDAQ index was trading at 1,153.7, down 7.01 points (0.6%) from the previous session. The KOSDAQ opened at 1,161.4 and is deepening losses intraday on selling by foreigners and institutions. Individuals alone are net buying 96.8 billion won.
Top KOSDAQ stocks are mixed. EcoPro, Alteogen, EcoPro BM, Rainbow Robotics, and ABL Bio are slightly lower, while Sam Chun Dang Pharm, Kolon TissueGene, and Caregen are edging up.
The three major U.S. stock indexes in New York closed lower overnight. Tensions over an imminent U.S. airstrike on Iran spread across financial markets, and skepticism about the AI industry intensified after private credit investor Blue Owl, which has aggressively invested in building AI data centers, said it would suspend redemptions for some funds.
On the 19th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 49,395.16, down 267.50 points (0.54%) from the previous session. The Standard & Poor's (S&P) 500 fell 19.42 points (0.28%) to 6,861.89, and the Nasdaq composite lost 70.91 points (0.31%) to 22,682.73.