The KOSPI, which reclaimed 8,000 points the previous day, broke through the 8,400 level in just one day on the 27th, powered by gains in large-cap semiconductor stocks. The move is attributed to the strength of semiconductor shares overnight on Wall Street and the listing that day of single-stock leveraged exchange-traded funds (ETFs) for Samsung Electronics and SK hynix on the domestic market.
As of 9:40 a.m., the KOSPI index was trading at 8,360.67, up 313.16 points (3.89%) from the previous session. The KOSPI opened at 8,242.12, up 94.61 points (2.42%) from the prior day, then extended gains, triggering a buy sidecar six minutes after the open that suspended the validity of program-trading buy quotes for five minutes. At the time of activation, the KOSPI 200 futures index stood at 1,333.50, up 66.10 points (5.21%) from the previous session's close.
In the main board, foreign investors and the national pension fund were net buyers of 76.3 billion won and 151.8 billion won, respectively. Individuals were net sellers of 246.4 billion won, taking profits.
The semiconductor "two-top" is driving the index higher. Samsung Electronics and SK hynix are up in the 6% and 9% ranges, respectively. Samsung Electronics rose intraday to 330,000 won and SK hynix to 2,285,000 won, setting new record highs. SK hynix became the second to join the $1 trillion market cap club after Samsung Electronics. As semiconductor tailwinds spread to component makers, Samsung Electro-Mechanics and LG Innotek also set fresh record highs.
Han Ji-young, a Kiwoom Securities researcher, said, "Today, the domestic stock market is expected to open higher on the back of easing surges in interest rates, strength in U.S. semiconductor stocks, and a sharp rise in KOSPI overnight futures, and then be affected by intraday flow events."
On the day, 16 single-stock leveraged ETFs that each track Samsung Electronics and SK hynix at twice the daily move were listed at once on the domestic market. According to the Korea Financial Investment Association, as of the 25th, more than 130,000 people had completed pre-education, indicating strong investor interest, which is expected to have a significant impact on flows in related names.
In the morning, the results of a vote on a tentative agreement by the Samsung Electronics union are also slated to be released. After mediation by the National Labor Relations Commission, Samsung Electronics labor and management prepared a tentative agreement that includes wage increases and the introduction of a special performance bonus system, and the union will close voting at 10 a.m. that day.
Overnight, U.S. stocks were mixed as semiconductor and tech names gained. The Dow Jones Industrial Average fell 0.23%, but the Standard & Poor's (S&P) 500 index and the Nasdaq rose 0.61% and 1.19%, respectively, hitting a record high again.
In particular, memory chipmaker Micron Technology surged 19.3% after UBS raised its target price, pushing its market capitalization above $1 trillion. As a result, investor sentiment toward semiconductor and tech stocks in the U.S. market improved significantly.
UBS analyzed that the spread of AI is tightening supplies of High Bandwidth Memory (HBM), DRAM, and NAND, strengthening memory makers' pricing power. It also assessed that Micron is shifting away from its traditional cyclical profile toward a stable, high-profit structure. The market sees a strong possibility that this trend will lead to improved investor sentiment toward large domestic semiconductor stocks.
The KOSDAQ index opened at 1,173.80, up 1.28 points (0.11%) from the previous session but immediately turned lower and is down in the 2% range.
Top market-cap stocks are mixed. EcoPro BM, EcoPro, and Alteogen are rising, while Rainbow Robotics, Kolon TissueGene, and LEENO Industrial are weak.