The KOSPI has surpassed the 8,000-point mark for the first time in history. While foreign and institutional investors have been selling, retail investors are aggressively buying, driving the index higher.
According to the Korea Exchange on Wednesday, the KOSPI was trading at 8,028.43, up 47.02 points or 0.59% from the previous session. The index opened at 7,951.75, down 29.66 points or 0.37%, but turned higher after the open and crossed the 8,000-point threshold.
The breakthrough above 8,000 is attributed to sustained buying by retail investors. Foreign investors were net sellers of 744.5 billion won, while retail and institutional investors were net buyers of 707.9 billion won and 12.7 billion won, respectively.
Among large-cap stocks on the main bourse, Samsung Electronics (005930.KS) (-0.25%), Doosan Enerbility (034020.KS) (-0.51%), and Samsung C&T (028260.KS) (-1.36%) traded lower, while SK hynix (000660.KS) (+0.81%), SK Square (402340.KS) (+0.68%), Hyundai Motor (005380.KS) (+3.51%), LG Energy Solution (373220.KS) (+3.39%), Samsung Electro-Mechanics (009150.KS) (+8.89%), and Kia (000270.KS) (+0.90%) advanced.
NH Investment & Securities maintained its "buy" rating on Samsung Electro-Mechanics and raised its target price to 1.5 million won from 1 million won. The brokerage sees further upside potential for the stock, which has more than quadrupled this year.
"With price hikes beginning on some multi-layer ceramic capacitor (MLCC) products, we have raised our earnings estimates," Hwang Ji-hyun, an analyst at NH Investment & Securities, said in a report Wednesday. "Considering synergies with the package solution division, we have expanded the valuation premium for the components division to 50% from the previous 30%."
LG Electronics (066570.KS) also surged, breaking through 240,000 won. The market viewed positively the company's aggressive push into new businesses related to robotics, which is securing growth momentum. Holding company LG Corp. (003550.KS) also soared to its daily upper limit.
Talks between the United States and China appeared to support investor sentiment. Following the U.S.-China summit, the White House said, "Both sides agreed that the Strait of Hormuz should remain open to ensure the free flow of energy," adding that "President Xi made clear China's opposition to any efforts to militarize the Strait of Hormuz or impose transit fees."
"The KOSPI is poised to break through 8,000 points, supported by expectations for the U.S.-China summit and the strength of the Nasdaq led by artificial intelligence stocks, despite weakness in U.S. semiconductor names such as Micron," said Han Ji-young, an analyst at Kiwoom Securities.
