The KOSPI market briefly surged, triggering a temporary suspension of program buy orders known as a sidecar, but pared its gains toward the close to finish up more than 2 percent. The KOSDAQ jumped 5 percent as shares of semiconductor materials, parts and equipment companies soared.
According to the Korea Exchange, the KOSPI closed at 7,475.94, up 184.03 points, or 2.52 percent. A buy sidecar was activated at 12:54 p.m., but the index later reduced its gains. A KOSPI buy sidecar is triggered when KOSPI 200 futures (nearest month) rise 5 percent from the previous trading day and the increase is sustained for one minute. A sidecar is a measure to ease overheating or shocks caused by a sharp rise or fall in the stock market.
The KOSDAQ closed at 837.43, up 43.43 points, or 5.47 percent, from the previous trading day. The KOSDAQ index also triggered a buy sidecar at 1:08 p.m. A KOSDAQ buy sidecar is activated when KOSDAQ 150 futures prices rise 6 percent or more and the KOSDAQ 150 index rises 3 percent or more from the previous trading day, with both conditions sustained simultaneously for one minute.
Domestic stock markets soared as concerns over a peak in artificial intelligence (AI) investment, which had been a source of anxiety, were partly eased. According to a Reuters report the previous day, Meta plans to build 7 gigawatts (GW) of computing infrastructure this year. Meta's internal documents reportedly contain plans to add 5.5 GW of infrastructure by the end of the year. It was also reported that the company plans to expand its total capacity to 14 GW next year by adding another 7 GW of computing infrastructure. When global Big Tech companies increase AI infrastructure investment, it affects the earnings of companies that produce related products such as semiconductors and power equipment.
On the KOSDAQ, shares of semiconductor materials, parts and equipment companies rose sharply. Jusung Engineering, a semiconductor equipment company, closed at 191,900 won, up 7.57 percent from the previous trading day. Wonik IPS, the seventh-largest company by market capitalization on the KOSDAQ, surged 19.16 percent, and Leeno Industrial, the eighth-largest, rose 5.43 percent. PSK (24.44 percent), EO Technics (10.51 percent) and Eugene Technology (12.72 percent) also posted steep gains.
In the KOSPI market, Doosan closed up 14.88 percent. Doosan produces advanced materials that make up printed circuit boards (PCBs), including copper clad laminate (CCL) for AI accelerators. Samsung Electronics (005930.KS) rose as much as 7 percent at one point but pared its gains to close at 285,000 won, up 2.52 percent. SK hynix (000660.KS), which opened higher, closed at 2.18 million won, down 0.27 percent.
