The KOSPI index broke through the 9,000 level for the first time in history, opening a new chapter for Korea's capital market. Despite a hawkish U.S. Federal Open Market Committee (FOMC) meeting outcome, strong fund inflows concentrated in large-cap semiconductor and multilayer ceramic capacitor (MLCC) stocks drove the index higher. The KOSDAQ index, by contrast, barely held the 1,000 line, in a session marked by extreme polarization.
According to the Korea Exchange, the KOSPI closed at 9,063.84 on Thursday, up 199.60 points, or 2.25%, from the previous session. It was the first time the KOSPI reached the 9,000 level. The index touched near the 9,100 line at one point during the session, displaying an unstoppable rally. It was just 16 trading days after the KOSPI settled above the 8,000 line on May 26 that it again crossed a 1,000-point milestone. In the KOSPI market, foreign investors single-handedly net bought 1.3186 trillion won worth of shares, pushing the index higher. Individuals and institutions sold 422.9 billion won and 770.7 billion won, respectively.
Semiconductors clearly led the day's rally. While the New York stock market wavered following the June FOMC outcome, which favored tighter monetary policy than the market expected, the domestic market continued its rally centered on large-cap technology stocks, undeterred. Samsung Electronics (005930.KS), the top stock by market capitalization, closed up 4.62% at 362,500 won, while SK hynix (000660.KS) finished up 6.51% at 2.685 million won. News that SK hynix supplied samples of its seventh-generation high-bandwidth memory (HBM) products to major clients, combined with remarks by Apple CEO Tim Cook hinting at support for memory investment, stimulated investor sentiment. Holding company SK Square (402340.KS) (+6.52%) and MLCC leader Samsung Electro-Mechanics (009150.KS) (+8.27%) also extended their gains.
The top five stocks by market capitalization surged, leading the index past 9,000, but other stocks were thoroughly left behind. In the wake of a ceasefire agreement between the U.S. and Iran, defense, shipbuilding, and shipping stocks all tumbled. Hanwha Systems (-8.74%), HD Hyundai (-9.14%), HMM (-7.47%), and Hanwha Ocean (-6.01%) all plunged together, while major secondary battery stocks such as LG Energy Solution (-3.85%) and Samsung SDI (-5.09%) could not avoid declines either. As trading concentrated in large caps, 112 stocks rose in the KOSPI market while 791 stocks fell, with declining stocks overwhelmingly outnumbering gainers.
Amid the lack of fund flows, the KOSDAQ had another difficult day. After a hard-fought battle to maintain the 1,000 line, the KOSDAQ index closed at 1,000.93, down 31.03 points, or 3.01%, from the previous session. Individuals net bought 392.7 billion won in defense, but foreigners and institutions dumped 132.3 billion won and 265.0 billion won, respectively, fueling the index's decline. Major secondary battery and bio stocks such as Ecopro BM, Ecopro, and Alteogen slid, weighing down the index.
Securities analysts are cautiously forecasting the possibility of the large-cap-driven KOSPI breaking the 10,000 line, but many voices are also wary of overheating. The fact that the "KOSPI 200 Volatility Index (VKOSPI)," known as Korea's fear index, has surpassed 80, reflecting anxiety from the short-term surge and uncertainty in the stock market, is also a burden. The time lag before international oil prices stabilize, despite the easing of Middle East risk, is also cited as a variable investors should watch.
