The KOSPI index set another record high on a closing basis. Backed by easing U.S.-related geopolitical risk and the National Pension Service's higher cap on domestic stock holdings, it strengthened and settled in the 8,470 range.
On the 29th in the Korea Exchange, the KOSPI index finished trading at 8,476.15, up 290.86 points (3.55%) from the previous session. Opening 199.02 points (2.43%) higher than the previous session, the KOSPI expanded its gains and secured the 8,400 level.
Institutions led the rise of the KOSPI index in the Korea Exchange that day. While foreigners and individuals net sold 840 billion won and 2 trillion won, respectively, institutions net bought about 2.7 trillion won.
It is analyzed that hopes for an end to the war between the United States and Iran grew the previous day, reviving risk-on sentiment. As a result, buying appeared to concentrate on large-cap semiconductor names and the information technology sector.
The National Pension Service fund management committee's decision to raise the allocation to domestic stocks to 20.8% is also seen to have eased investor sentiment.
Brokerages analyzed that the KOSPI's gains are concentrated in semiconductors, Robotics, and large-cap IT group stocks.
Kang Jin-hyeok of Shinhan Investment & Securities said, "As global risk-on sentiment spread, large caps such as semiconductors and Robotics were broadly strong," and noted, "The KOSPI advance-decline ratio (ADR) is 51%, the lowest level in about six years since March 2020."
ADR refers to an indicator that divides the number of advancing issues by the number of declining issues over a given period. The baseline of 100% means advancing and declining issues are in balance. Above 120% is classified as overbought, and below 70% as oversold.
Even as the KOSPI surges, the ADR sitting in the oversold zone can be interpreted as an intensification of concentration in a handful of leading stocks.
In fact, while large-cap names with top market capitalizations led the index higher, most small and mid caps could not avoid a downward trend.
In particular, Samsung Electronics closed at 317,000 won, up 17,500 won (5.84%) from the previous session's close on news of a new semiconductor launch. Including preferred shares, Samsung Electronics' market capitalization topped 2,000 trillion won.
SK hynix also ended the session at 2,333,000 won, up 44,000 won (1.92%). Samsung Electro-Mechanics surged 14.3%, overtaking Hyundai Motor to rank fourth in market cap.
In the Seoul foreign exchange market, the dollar-won rate closed at 1,507.9 won, up 5.1 won from the previous day. International oil prices were stable. West Texas Intermediate (WTI) settled at $87.42 per barrel, and Brent at $91.43.
The KOSDAQ market weakened, unlike the KOSPI's record-setting trend. The KOSDAQ index ended the session at 1,074.80, down 29.56 points (2.68%) from the previous session. Individuals net bought more than 300 billion won, while institutions net sold more than 300 billion won.
Lim Jeong-eun of KB Securities said, "Both major indexes opened higher, but while KOSDAQ quickly turned lower, KOSPI succeeded in hitting a record high, creating a stark contrast," and added, "With external uncertainties easing on a provisional memorandum of understanding between the United States and Iran, gains led by leading stocks continued in the domestic market."