US Stock Market Rally Boosts KOSPI and KOSDAQ... Samsung Electronics Rises Over 2%

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The domestic stock market is showing an upward trend influenced by the strong performance of the U.S. stock market. Following the positive momentum of global semiconductor companies the previous day, Samsung Electronics and SK Hynix rose by more than 2%.

As of 9:22 a.m. on the 5th, the KOSPI stood at 2228.40, up 0.89% (19.02 points) from the previous trading day. The index started the day at 2248.85, up 1.79% (39.47 points) from the previous day, showing strong gains in the early session. Currently, foreigners and individuals have bought stocks worth 17.7 billion KRW and 232.8 billion KRW respectively, while institutions have sold stocks worth 254.2 billion KRW alone.

Looking at the top market capitalization stocks, Samsung Electronics rose 2.36% to 56,500 KRW. LG Energy Solution (1.69%), SK Hynix (2.78%), LG Chem (1.62%), Samsung SDI (2.88%), Hyundai Motor (1.11%), and Kia (0.96%) also showed upward trends. On the other hand, NAVER alone fell 2.83%, remaining in 9th place in market capitalization.

The domestic stock market showed strong gains as the U.S. stock market reflected expectations of the Federal Reserve (Fed) slowing the pace of interest rate hikes. Currently, the market seems to be pricing in some degree of pace adjustment by the Fed, even if not a full policy shift.

Han Ji-young, a researcher at Kiwoom Securities, said, “The justification for the Fed’s consecutive giant steps was solid employment data, but we need to consider that the August job openings announced yesterday are slowing down.” She added, “From an industry perspective, semiconductor stocks like Samsung Electronics are presumed to have surged due to the perception of a peak in negative factors such as poor earnings and reduced investment.”

At the same time, the KOSDAQ index stood at 700.36, up 0.51% (3.57 points) from the previous trading day. The KOSDAQ started the day at 706.76, up 1.43% (9.97 points), showing strong gains. Regarding investment trends, individuals alone bought stocks worth 87.9 billion KRW, while foreigners and institutions sold stocks worth 74.3 billion KRW and 9.9 billion KRW respectively.

Among the top market capitalization stocks, Celltrion Healthcare (1.02%), EcoPro BM (1.84%), L&F (1.93%), HLB (0.22%), EcoPro (3.32%), and Rino Industrial (1.49%) rose, while Kakao Games (-0.8%), Pearl Abyss (-0.73%), and JYP Ent. (-0.84%) declined.