The Korean stock market is experiencing an unprecedented surge, with explosive gains across the board.
On this day, the KOSPI index recorded a remarkable increase of over 14% in just one day. It opened at 6,385.83, while the KOSDAQ index also rose by more than 6%, reaching 683.64, adding vitality to the overall market.
The early gains were primarily driven by major semiconductor stocks related to artificial intelligence (AI). SK Hynix, which saw the highest trading volume, surged 22.69% to open at 1,622,000 won, buoyed by news of Chairman Chey Tae-won's share buyback and expectations of significant benefits from the global AI boom. Samsung Electronics also recorded over 4 trillion won in trading volume, starting at 253,000 won, a 22.22% increase.
Companies involved in components and equipment also saw significant gains. Samsung Electro-Mechanics jumped 23.44% to open at 1,085,000 won, while SK Square rose 23.90% to 990,000 won. Leading internet company Naver opened at 204,500 won, up 5.03%. Hanmi Semiconductor, noted for its AI semiconductor equipment, soared 21.72% to start trading at 204,000 won.
The reasons for this surge can be summarized in three key points. First, stable economic indicators from the United States have led to a lowered expectation of further interest rate hikes, prompting a significant influx of investment funds into the stock market due to eased loan and interest burdens.
Second, earnings reports from major U.S. IT companies like Microsoft and Amazon alleviated concerns about over-investment in the AI sector. Despite substantial expenditures, these companies demonstrated strong cash flow and financial health, leading to increased expectations for Korean semiconductor firms as they announced plans to boost AI investments.
Third, foreign investors have shown a strong buying interest, purchasing approximately 3.3 trillion won worth of stocks in the KOSPI market alone from the outset. This concentrated buying of Korea's large-cap stocks contributed to the KOSPI's 14% jump at the market's opening.
Experts believe this upward trend is likely to continue for the time being. While the initial surge may lead to some price corrections or a breather, the influx of 3.3 trillion won from foreign investors is expected to provide a solid foundation for the market.
As long as major U.S. tech companies continue their AI investments, improvements in the performance of Korean semiconductor firms are inevitable. Therefore, analysts suggest that the upward trajectory is likely to be sustained in the near term.
* This article has been translated by AI.
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