The KOSPI index surged more than 3% on the 12th. As expectations grew that Samsung Electronics and SK hynix would soon announce large-scale shareholder return policies, semiconductor-related stocks rallied across the board. In particular, a massive inflow of foreign funds led the index higher.
The KOSPI index closed at 6,579.04, up 233.51 points (3.68%) from the previous trading day. In the main board, foreigners were net buyers of more than 3.4 trillion won, and institutions also had a net buying advantage of 660 billion won. Foreign investors concentrated on buying the electrical and electronics sector, including semiconductor stocks. Individuals were net sellers of more than 3.8 trillion won.
Starting higher around the 6,430 level, the KOSPI index expanded its intraday gains to break through 6,500 and 6,600 points in succession. Around noon, as index futures jumped, a "buy sidecar" was triggered, temporarily pausing program buy orders. The KOSPI index at one point spiked more than 5% to top 6,668 points, then gave back part of the gains to finish trading around the 6,570 level.
Samsung Electronics(005930) and SK hynix(000660) each jumped 5%–6%. SK Square also rose more than 8%. Expectations that Samsung Electronics and SK hynix, whose earnings have improved sharply amid the artificial intelligence (AI) boom, will announce the largest-ever shareholder return policies buoyed investor sentiment.
Semiconductor stocks were strong, but the extreme concentration seen before did not appear. Although AI value-chain stocks such as Samsung Electro-Mechanics(009150) and Iljin Electric(103590) drew attention, funds also flowed broadly into sectors with expected earnings improvement. Hankook Tire & Technology(161390) rose more than 7%, and cosmetics names Kolmar Korea(161890) and COSMAX(192820) also posted big gains.
Ahead of the release of the U.S. July consumer price index (CPI), global markets were generally sluggish, but the domestic market alone posted sharp gains. U.S. stocks fell across the board the previous day, and Japanese and Taiwanese indexes inched higher. Although preferences for equities did not improve dramatically, expectations for shareholder return policies at domestically listed companies appear to be high.
By contrast, the KOSDAQ index ended slightly higher. After opening lower, the KOSDAQ index rebounded intraday but closed at 858.91, up 1.07 points (0.12%).