The KOSPI index broke through the 8,200 level, setting another record high. Technology stocks surged in the U.S. market the previous day, and as single-stock leveraged exchange-traded funds (ETFs) using Samsung Electronics and SK hynix as the underlying asset debuted on Korea's market, semiconductor heavyweights led a sharp rally.
On the 27th, the KOSPI index closed at 8,228.70, up 181.19 points (2.25%) from the previous trading day. During the session, it rose above the 8,450 level, hitting record highs on both an intraday and closing basis. As the index jumped early, a buy-side sidecar was triggered on the KOSPI market, and the KOSPI 200 volatility index (VKOSPI) also climbed back above the 70 level for the first time in two sessions.
In the main board, individuals and institutions were net buyers of 406.6 billion won and 188.0 billion won, respectively. Among institutions, pension funds were net sellers, but brokerages, which reflect ETF fund flows, posted net purchases of 1.32 trillion won. Foreign investors were net sellers of 449.8 billion won. Individuals, who had taken profits early in the session, turned to net buying in the afternoon, and foreigners also briefly shifted to net buying during the session, but the scale was limited.
With money flocking to the newly listed single-stock leveraged ETFs on Samsung Electronics and SK hynix, both Samsung Electronics and SK hynix also set fresh all-time highs. Samsung Electronics rose intraday to 330,000 won, and SK hynix climbed to 2,358,000 won, marking new peaks. SK hynix surpassed a market capitalization of $1 trillion, becoming the second domestic company after Samsung Electronics to join the "$1 trillion market cap club."
The four newly listed 2x leveraged single-stock ETFs on Samsung Electronics and SK hynix drew about 1.95 trillion won in net individual buying, nearing 2 trillion won. The total market capitalization of the domestic ETF market also topped 500 trillion won for the first time. About 690.9 billion won in net individual buying flowed into "TIGER SK hynix Single-Stock Leverage," and about 667.4 billion won into "KODEX SK hynix Single-Stock Leverage," ranking No. 1 and No. 2 in ETF market net purchases.
By contrast, sectors in the AI value chain excluding semiconductors were relatively weak. HD Hyundai Electric fell 4.7%, and Hyundai Motor slipped 1.16%.
Lim Jeong-eun, an analyst at KB Securities, said, "The KOSPI index was strong, but the number of gainers was fewer than 80, highlighting intensified concentration of flows in semiconductor large caps," and noted, "It is also necessary to watch for new liquidity inflows and heightened flow volatility stemming from single-stock ETF listings."
As funds concentrated in semiconductor large caps, the KOSDAQ market lagged relatively. The KOSDAQ index finished at 1,133.13, down 39.39 points (3.36%) from the previous trading day. However, as some biotech stocks rebounded, the decline narrowed somewhat from intraday levels.
Alteogen rose 5.75%, and D&D Pharmatech hit the upper price limit on news that the efficacy of its U.S. phase 2 trial for the metabolic dysfunction-associated steatohepatitis (MASH) drug candidate "DD01" was demonstrated.
Lee Jae-won, an analyst at Yuanta Securities Korea, said, "If semiconductor strength and a large-cap-led rally continue, KOSDAQ market weakness may be unavoidable," adding, "With flows focusing on large caps, profit momentum is also weaker than the KOSPI, so the potential for rotation is limited."
On the 28th, key events are scheduled, including the Bank of Korea's monetary policy committee, the U.S. April personal consumption expenditures (PCE) price index, and earnings from U.S. semiconductor company Marvell Technology. The securities industry sees whether inflation stabilizes as a key variable for the KOSPI's upward trend going forward.