The stock market's strong rally is continuing. On the 19th, the KOSPI opened with a sharp rise and is once again setting an intraday all-time high. As the war between the United States and Iran ends, investor sentiment is improving, while U.S. President Donald Trump is emphasizing domestic semiconductor chip design and production, sending semiconductor stocks in the United States and Korea higher.
The KOSPI started trading at 9,288.89, up 225.05 points (2.48%) from the previous trading day. As early gains widened, the index briefly surpassed 9,300 points. Samsung Electronics and SK hynix both hit record highs. Record highs are also continuing for other stocks leading the gains, including SK Square and Samsung Electro-Mechanics.
U.S. stocks rose across the board the previous day. The tech-heavy Nasdaq, in particular, climbed nearly 2%. As President Trump mentioned cooperation between Apple and Intel, semiconductor and technology stocks led the index higher. With the Philadelphia Semiconductor Index up 6.4%, Intel and Micron shares posted big gains.
Also, the leaders of the United States and Iran signed a memorandum of understanding for an end to hostilities. With the full lifting of the blockade of the Strait of Hormuz, a key crude shipping route, international oil prices fell. Thanks to that, investor sentiment toward global risk assets such as stocks improved sharply.
In the Korea Exchange, foreigners are showing net selling. Financial investment institutions, where exchange-traded fund (ETF) flows are tallied, are also net sellers. In contrast, pension funds and individual investors are net buyers.
While large-cap stocks are rising across the board, Samsung C&T is up more than 10%. As the holding company of the Samsung group, buying appears to be gathering on expectations that the value of affiliates' equity will rise and that large dividends are likely.
Han Ji-young, a Kiwoom Securities researcher, said, "With the Philadelphia Semiconductor Index surging, the market opened higher on the back of semiconductors' solo run," adding, "However, as the KOSPI breaks through 9,000 points, the urge to take profits is strong, and the burden from the rapid short-term spike could limit further momentum and shift the market into sector-rotation trading."
The KOSDAQ market is showing weakness. As investment funds concentrate in large-cap semiconductor stocks, the KOSDAQ market continues to be sidelined. The KOSDAQ started lower and is moving below 1,000 points.