The KOSPI and KOSDAQ markets surged on the 10th, triggering sidecars that temporarily halted program buy orders. The KOSPI opened slightly higher before extending its gains. With Samsung Electronics (005930.KS) jumping more than 7 percent, shares of semiconductor materials, parts and equipment companies rallied across the board on the KOSDAQ.
The Korea Exchange (KRX) activated a buy sidecar on the KOSPI market at 12:54 p.m. A sidecar was triggered on the KOSDAQ market at 1:08 p.m. A KOSPI buy sidecar is activated when the KOSPI 200 futures (nearest month) rise 5 percent from the previous trading day and the gain persists for one minute. A KOSDAQ buy sidecar is triggered when the KOSDAQ 150 futures price rises 6 percent or more from the previous trading day and the KOSDAQ 150 index rises 3 percent or more, with both conditions persisting simultaneously for one minute. Sidecars are measures to ease overheating or shock from sharp market rises or falls.
The KOSPI opened at 7,552.49, up 260.58 points, or 3.57 percent, from the previous trading day, and extended its gains. As of 1:18 p.m., Samsung Electronics was surging 7.10 percent, while SK hynix (000660.KS) was up 3.84 percent. Other large-cap stocks also rose sharply, including SK Square (7.46 percent) and Samsung Electro-Mechanics (7.57 percent). On the KOSDAQ, most top market-cap stocks turned higher, including Alteogen (8.17 percent) and EcoPro BM (9.69 percent).
Analysts attribute the market's advance, led by large semiconductor stocks, to a partial easing of concerns over a peak in artificial intelligence (AI) investment, which had been a source of market anxiety. The previous day, U.S. memory chipmaker Micron Technology announced plans to invest more than 250 billion dollars by 2035 to meet rising AI demand. Because semiconductor companies closely assess market demand and execute facility investments preemptively, the market interpreted the move as a green light for growth in the semiconductor industry. Overnight, New York's stock market saw semiconductor stocks surge, with the Nasdaq Composite Index rising 1.30 percent, as all three major stock indexes advanced.
On the KOSDAQ, shares of semiconductor materials, parts and equipment companies rose sharply. Semiconductor equipment maker Jusung Engineering was trading at 195,000 won, up 9.30 percent from the previous trading day. Wonik IPS, the seventh-largest company by KOSDAQ market capitalization, was surging 18.40 percent, while eighth-ranked Leeno Industrial was up 8.86 percent. PSK (23.98 percent), EO Technics (9.64 percent) and Eugene Technology (13.81 percent) also posted steep gains.
