Kospi Reclaims 7,000 Mark in Early Trading, Boosted by U.S. Tech Gains
Key Takeaways
- •The Kospi breached the 7,000-point level for the first time in 15 sessions, reaching an intraday high of 7,010.86 before paring gains to 6,945.46, a 1.94 percent increase.
- •The index's advance was prompted by a broad rally in U.S. technology stocks driven by easing inflationary pressures and falling oil prices.
- •Foreign investors purchased a net 468.6 billion won ($330.9 million) in stocks, while retail and institutional investors were net sellers of 194.2 billion won and 253.3 billion won, respectively.
- •SK hynix led gains among major chipmakers with a 5.02 percent rise, while Samsung Electronics added 0.84 percent, as both companies serve as key bellwethers for the global semiconductor cycle.
- •Samsung Electro-Mechanics climbed 3.06 percent after Morgan Stanley designated the company its top pick among Korean technology stocks, replacing Samsung Electronics.
South Korea's benchmark Kospi climbed above the 7,000-point level during Friday's trading session for the first time in 15 sessions, lifted by broad gains in U.S. technology stocks.
The index reached an intraday high of 7,010.86 in early trading, breaching the 7,000 threshold for the first time since July 24. It later pared some gains and was trading at 6,945.46, up 1.94 percent from the previous session, as of 9:25 a.m.
The Kospi's advance followed a broad rally in U.S. technology stocks during the prior session, driven by easing inflationary pressures and declining oil prices. Korean markets frequently move in sympathy with U.S. equities, particularly the tech-heavy Nasdaq, given the heavy weighting of semiconductor and electronics exporters on the Kospi.
On the main bourse, foreign investors were net buyers, purchasing 468.6 billion won ($330.9 million) worth of stocks. Retail and institutional investors were net sellers of 194.2 billion won and 253.3 billion won, respectively.
Most of the Kospi's large-cap stocks traded higher. Chipmakers Samsung Electronics and SK hynix gained 0.84 percent and 5.02 percent, respectively, while Samsung Electronics preferred shares and SK Square each rose more than 2 percent. Samsung Electronics is the world's largest memory chipmaker, and SK hynix ranks among the top global DRAM and NAND suppliers, making the pair key bellwethers for the global semiconductor cycle.
Samsung Electro-Mechanics surged 3.06 percent, building on a 12.58 percent gain from the previous session. The move came after Morgan Stanley named the company its top pick among Korean technology stocks, replacing Samsung Electronics. Samsung Electro-Mechanics supplies electronic components including multi-layer ceramic capacitors, which are essential parts used in smartphones, computers, and automotive electronics.
The secondary Kosdaq was trading at 869.45, up 0.94 percent.
