On the 27th, when the KOSPI hit an all-time high, the domestic stock market's total market capitalization set a milestone by surpassing 6,000 trillion won. Although the United States and Iran are at war and instability in the Middle East continues, the explosive growth of the artificial intelligence (AI) industry has pushed the semiconductor sector into a super-boom, and related companies are releasing earnings surprises, sustaining an earnings-led market.
However, some are increasingly worried about overheating. The "Buffett indicator," which views 200% as "overheated" when market cap is divided by GDP, shows that our market cap (6,000 trillion won) has far exceeded twice nominal gross domestic product (GDP). A securities firm's report that downgraded its investment view on SK hynix from "buy" to "hold" also drew investors' attention as the stock price topped 1.3 million won to hit a record high that day.
The KOSPI closed at 6,615.03, up 139.40 points (2.15%) from the previous trading day. After opening higher, the KOSPI widened its gains from early in the session.
Foreigners and institutions lifted the index with simultaneous net buying. In the Korea Exchange main board, foreigners were net buyers of 1.2 trillion won, and institutions were also net buyers of 1.4 trillion won. Individuals were net sellers of 2.5 trillion won. Foreigners showed a net long position in KOSPI 200 futures.
The KOSDAQ also showed strength. The KOSDAQ likewise widened its intraday gains and closed at 1,226.18, up 22.34 points (1.86%) from the previous trading day. In the KOSDAQ market, institutions and individuals were net buyers.
The United States and Iran continue armistice talks, and expectations are growing that the two countries will ultimately reach an agreement and end the war. With sensitivity to geopolitical risk fading, listed companies are reporting strong results. Over the weekend, U.S. tech stocks such as Intel and Nvidia rose on improved earnings. Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, said, "Expectations that the AI value chain will lead stock gains are resurfacing."
Not only did big-cap semiconductor stocks such as Samsung Electronics, SK hynix and HANMI Semiconductor gain, but power equipment names expected to benefit from the AI value chain also rallied. Hyosung Heavy Industries topped 4 million won intraday, and LS Electric also set a record high.
In the KOSDAQ market, battery stocks were weak, but biotech and robotics advanced. LEENO Industrial, whose CEO released plans to sell equity, plunged more than 11%, but among the top market-cap names, robotics and biotech stocks such as Rainbow Robotics and ABL Bio jumped sharply.