KOSPI Surges Above 2860 Level, Highest in 2 Years and 6 Months
Samsung Electronics Breaks 87,000 Won, Hits 52-Week High
Expectations Rise for KOSPI Earnings Forecasts Amid Samsung Electronics' Performance Improvement
As the KOSPI and Samsung Electronics both hit new highs, expectations are growing for the KOSPI to surpass the 3,000 mark and Samsung Electronics to break the 90,000 KRW level. The KOSPI set consecutive new record highs for two days, and Samsung Electronics recorded a 52-week high. Given Samsung Electronics' significant weight in the KOSPI, if the company continues its upward trend, the KOSPI's bullish momentum is also expected to continue.
According to the Korea Exchange on the 8th, the KOSPI closed at 2,862.23 on the 5th, up 37.29 points (1.32%) from the previous day. This is the highest record in two and a half years since January 2022, with the KOSPI setting new consecutive highs and settling in the high 2,800 range.
Samsung Electronics led the KOSPI's new high by rising sharply for two consecutive days. Samsung Electronics rose 3.42% on the 4th and increased by 2.96% on the 5th, closing at 87,100 KRW. This is a 52-week high.
Samsung Electronics' stock price was boosted by an earnings surprise in the second quarter of this year. On the 5th, Samsung Electronics announced that its operating profit for the second quarter was 10.4 trillion KRW, a 1,452.24% increase compared to the same period last year. During the same period, sales reached 74 trillion KRW, up 23.31% year-on-year. The strong performance attracted foreign and institutional investors. On that day, foreigners were net buyers of Samsung Electronics with 1.1846 trillion KRW, purchasing the most, and institutions also bought 586.5 billion KRW worth of Samsung Electronics, making it their largest holding.
Kang Jin-hyuk, a researcher at Shinhan Investment Corp., said, "Samsung Electronics' preliminary second-quarter results, which exceeded market expectations, ignited domestic investor sentiment mainly among foreigners," adding, "With two consecutive days of gains, Samsung Electronics' market capitalization recovered to 500 trillion KRW on the 4th and surpassed 87,000 KRW for the first time in about three and a half years on the 5th."
Samsung Electronics' improving earnings trend is expected to continue, along with sustained stock price strength. Ryu Young-ho, a researcher at NH Investment & Securities, said, "We are raising Samsung Electronics' target price from 100,000 KRW to 120,000 KRW," adding, "As we move into the second half of the year, the benefits from the semiconductor cycle are expected to strengthen, and the possibility of entering the high-bandwidth memory (HBM) market is increasing. Therefore, the discount factors that have been applied so far are expected to be resolved, and especially the attractiveness of Samsung Electronics, which holds a volume advantage, is expected to increase."
If Samsung Electronics' upward trend continues, the KOSPI's bullish momentum is also expected to persist. This year, Samsung Electronics and the KOSPI have shown similar trends. When the KOSPI underperformed compared to major overseas stock markets in the first half of the year, Samsung Electronics' sluggish stock price was pointed out as a factor behind the KOSPI's relative weakness. Cho Jun-gi, a researcher at SK Securities, explained, "Since Samsung Electronics accounts for more than 20% of the KOSPI, if Samsung Electronics starts to perform well, the upside potential at the index level will inevitably increase significantly."
In particular, as Samsung Electronics' earnings surprise is expected to lead to upward revisions of the KOSPI's second-quarter earnings forecasts, it is likely to have a positive impact on the KOSPI. Cho Jae-woon, a researcher at Daishin Securities, said, "With Samsung Electronics' earnings surprise, the upward revision of the KOSPI's second-quarter earnings and annual operating profit forecasts has become a foregone conclusion," adding, "This will not only drive Samsung Electronics' stock price but also expand the KOSPI's potential for further gains."
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