The KOSPI index closed at 6,813.34, marking a substantial increase of 234.30 points, or 3.56%. This extends the index’s winning streak to four consecutive trading sessions and represents its highest closing level in roughly three weeks. The rally was predominantly led by major semiconductor manufacturers, including Samsung Electronics and SK Hynix.
This strong performance in the domestic market largely stems from positive developments in the United States. Investor concerns about further interest rate hikes by the U.S. Federal Reserve eased following a deceleration in the U.S. Consumer Price Index (CPI) for July. The July CPI showed a year-over-year increase of 3.4%, moderating from 3.5% in the previous month. This positive news spurred a rally in U.S. artificial intelligence (AI) infrastructure-related semiconductor stocks, with the bullish sentiment quickly spreading to the South Korean market.
On the main KOSPI board, foreign and institutional investors were significant net buyers, accumulating over 2.1 trillion won and 680 billion won in shares, respectively, thereby driving the index’s ascent. Conversely, individual investors were net sellers, offloading more than 2.7 trillion won worth of shares, seemingly locking in profits. Among the leading semiconductor companies, Samsung Electronics gained 4.89%, while SK Hynix rose by 5.92%, contributing significantly to the overall market’s strong showing.
Market participants are largely optimistic, citing an improving outlook for the semiconductor industry and the potential for a more moderate pace of U.S. interest rate increases. However, some cautious voices highlight that despite the KOSPI’s robust gain, only about 35% of all listed stocks advanced, suggesting a rally concentrated in specific sectors rather than a broad market recovery. Additionally, persistently high interest rates and the fluctuating won-dollar exchange rate could introduce further market volatility in the near term.
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Domestic Equities Desk · Domestic Equities
