The KOSPI on the 4th broke through 6,800 points and 6,900 points in succession and is now within sight of 7,000. Powered by heavy net buying by foreigners, the index has been setting new records day after day. Tensions from the war between the United States and Iran continue, but they did not quell the explosive buying concentrated in large-cap chip stocks such as Samsung Electronics and SK hynix.
The KOSPI closed at 6,936.99, up 338.12 points (5.12%) from the previous trading day. The index opened at 6,782.93, up 184.06 points (2.79%), then broke through 6,800 points and 6,900 points around 10 a.m. and 1 p.m. The intraday gain kept widening.
The drivers of the "unprecedented rally" were foreigners and institutions. In the main board, foreigners posted a net purchase of 4 trillion won, and institutions also bought a net 2.5194 trillion won. Pension funds were net sellers, but money flowed in through the financial investment account. Retail investors sold a net 6.3195 trillion won.
A surge in large-cap semiconductor stocks lifted overall market sentiment. Samsung Electronics rose 5.44%, and SK hynix jumped 12%, achieving "230,000 Electronics and 1.44 million Hynix." The gains appear to reflect positives such as strong earnings by U.S. big tech during the Labor Day market holiday and a sharp jump in April semiconductor exports.
Securities stocks were also strong. Samsung Securities soared 28.28%, hitting an all-time high. Mirae Asset Securities (8.49%) and NH Investment & Securities (8.32%) also climbed in succession.
Lim Jeong-eun, an analyst at Samsung Securities, said, "Samsung Securities, together with Interactive Brokers (IBKR), a global brokerage, is preparing an integrated account service for foreigners, and expectations of first-mover advantage appear to have sent the stock surging," adding, "With improved brokerage (commission trading) revenue prospects, warmth spread across the securities industry."
On the day, Samsung Securities projected that the KOSPI will rise to 8,400 points this year. Although the war with Iran has not ended, it said profits are likely to keep improving as liquidity continues to expand.
Yang Il-woo, an analyst at Samsung Securities, said, "Because the global liquidity expansion phase is continuing, we expect ongoing strength centered on the AI value chain—semiconductors, electrical equipment, and robots, which are already preferred sectors," adding, "We also see a need to prepare for the possibility of valuation re-rating in domestic sectors such as finance and consumer goods."
The KOSDAQ also closed higher at 1,213.74, up 21.39 points (1.79%) from the previous day as foreigners led buying. It reclaimed the 1,200 level in a day.
On expectations of rising power demand driven by AI data centers, LS Marine Solution jumped 29.88% from the previous trading day, hitting a record high.
Among top market-cap stocks, Sam Chun Dang Pharm and ABL Bio fell in the 1% range, but most others finished higher, including EcoPro BM (4.61%), EcoPro (1.90%), and Alteogen (1.22%).