South Korea's KOSPI index surged 5.96% to 7,150.26 at 9:15 AM on the 22nd. The index reclaimed the 7,000 level for the first time in 4 trading days since the 15th. Foreign investors drove the rally with net buying of 1.2636 trillion won, while semiconductor leaders Samsung Electronics and SK Hynix rose 5.69% and 8.88% respectively. The surge followed overnight gains in US tech stocks, with the Philadelphia Semiconductor Index up 5.21% and SK Hynix's American Depositary Receipt jumping 13.75%.
Foreign Investors Net Buy 1.26 Trillion Won as Semiconductors Lead Rally
According to the Korea Exchange, foreign investors purchased a net 1.2636 trillion won in KOSPI stocks as of 9:15 AM on the 22nd. Individual investors sold a net 670.1 billion won, while institutional investors offloaded 391 billion won during the same period.
The index opened at 7,052.09, up 304.14 points (4.51%) from the previous trading day, and continued to expand gains throughout the morning session. A buy-side sidecar was triggered at 9:06:02 AM shortly after market opening.
Samsung Electronics and SK Hynix Drive Index Above 7,000
Samsung Electronics traded at 273,750 won, up 5.69%, while SK Hynix rose 8.88% to 1,999,000 won at 9:15 AM on the 22nd. The two stocks account for 51.73% of KOSPI's total market capitalization.
Other major gainers included Samsung Electro-Mechanics (up 11.60%), Hyundai Motor (up 8.15%), LG Energy Solution (up 4.42%), and Samsung Biologics (up 2.01%). Companies holding stakes in the semiconductor giants also rose, with SK Square up 8.22%, Samsung Life Insurance up 6.96%, and Samsung C&T up 6.99%.
By sector, electrical and electronics stocks climbed 7.00%, manufacturing rose 6.20%, and construction gained 5.43%. Textiles and apparel fell 0.81%, while real estate declined 0.16%.
US Tech Stock Gains Boost Korean Market Sentiment
The KOSPI rally mirrored overnight strength in US equity markets, where all three major indices rose, led by the technology-heavy Nasdaq Composite. The Philadelphia Semiconductor Index advanced 5.21%, while SK Hynix's ADR surged 13.75%.
Han Ji-young, a researcher at Kiwoom Securities, stated: "Despite the burden of rising oil prices due to Middle East uncertainties, [KOSPI] will show an upward trend thanks to the joint surge in US semiconductor stocks, the strong 4% gain in KOSPI 200 night futures, and expectations for the domestic second-quarter earnings season for automobiles and banks later this week."
Global investment banks assessed that semiconductor stocks' fundamentals remain intact despite geopolitical tensions in the Middle East driving oil prices higher, while noting that recent stock price declines had been excessive.
The KOSDAQ index rose 4.49% to 787.16 at the same time, opening at 772.41 (up 2.53%) and expanding gains. Individual investors net bought 66.2 billion won in KOSDAQ stocks, while foreigners and institutions sold 37.5 billion and 25.5 billion won respectively. Rainbow Robotics surged 22.48% on news of Samsung Electronics' full-scale entry into the robotics business.
FAQ
Q: What caused the KOSPI index to surge above 7,000 on the 22nd?
A: The KOSPI rose 5.96% to 7,150.26 at 9:15 AM on the 22nd, driven by foreign investors' net buying of 1.2636 trillion won and strong gains in semiconductor stocks Samsung Electronics (up 5.69%) and SK Hynix (up 8.88%). The rally followed overnight strength in US tech stocks, with the Philadelphia Semiconductor Index up 5.21% and SK Hynix's ADR jumping 13.75%.
Q: How did Samsung Electronics and SK Hynix perform on the 22nd?
A: Samsung Electronics traded at 273,750 won, up 5.69%, while SK Hynix rose 8.88% to 1,999,000 won at 9:15 AM on the 22nd. The two stocks account for 51.73% of KOSPI's total market capitalization and led the index's reclaim of the 7,000 level for the first time since the 15th.
Q: What did the Kiwoom Securities analyst say about the market outlook?
A: Han Ji-young of Kiwoom Securities stated that despite rising oil prices from Middle East uncertainties, KOSPI would show an upward trend thanks to the surge in US semiconductor stocks, strong KOSPI 200 night futures gains of over 4%, and expectations for domestic second-quarter earnings from automobiles and banks later in the week.
