The KOSPI index closed up more than 17% on the back of strong earnings from major U.S. tech companies and expectations for increased investment in artificial intelligence (AI). Foreign investors made net purchases exceeding 8 trillion won, focusing on semiconductor stocks, prompting a simultaneous buy-side activation in both the securities and KOSDAQ markets early in the session.
On July 31, the Korea Exchange reported that the KOSPI finished at 6,595.45, up 1,001.89 points (17.91%) from the previous trading day. The index opened 64.23 points (1.15%) higher at 5,657.79 and quickly expanded its gains, reaching as high as 6,554.34 during the day.
Overnight, the New York stock market rose sharply as the June Personal Consumption Expenditures (PCE) price index met market expectations, buoyed by strong earnings from Microsoft and optimistic forecasts for Amazon. Semiconductor stocks surged, with Micron up 18.4% and SanDisk up 26.0%, helping to restore investor sentiment that had been dampened recently.
As the early surge continued, buy-side activations were triggered in both the securities and KOSDAQ markets. The strong buying trend persisted as foreign investments flowed in.
In the securities market, foreign and institutional investors made net purchases of 8.6355 trillion won and 1.6774 trillion won, respectively, while individual investors sold off 10.5017 trillion won.
Among the top market capitalization stocks, Samsung Electronics rose 26.81%, SK Hynix 29.95%, SK Square 29.91%, Samsung Electro-Mechanics 29.92%, Hyundai Motor 10.54%, LG Energy Solution 2.50%, Samsung Life Insurance 17.99%, KB Financial 0.66%, and Samsung C&T 19.56%, all closing higher.
The KOSDAQ index also saw significant gains, closing at 719.76, up 74.98 points (11.63%).
In the KOSDAQ market, foreign and institutional investors made net purchases of 250.3 billion won and 304.2 billion won, while individual investors sold 555.8 billion won.
Among the top KOSDAQ stocks, Alteogen rose 10.38%, EcoPro 12.04%, EcoPro BM 7.25%, Rainbow Robotics 16.09%, JUSUNG Engineering 26.65%, Rino Technology 16.12%, Wonik IPS 27.92%, HLB 2.17%, PSK 27.81%, and ABL Bio 9.87%, all closing higher.
Lee Kyung-min, a researcher at Daishin Securities, noted, "Following Microsoft, Amazon has also indicated strong performance in its cloud business and plans to increase capital expenditures, significantly easing concerns about the AI investment cycle. The perception that the global deleveraging that had recently pressured semiconductor and AI-related stocks is nearing its end has also contributed to the recovery in investor sentiment."
He added, "Foreign capital has flowed significantly into semiconductor and AI value chains, which had seen excessive declines recently. While volatility due to the recent surge is inevitable, the ongoing expansion of AI investments and expectations for improved earnings suggest that the recovery in investor sentiment may continue."
* This article has been translated by AI.
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