KOSPI Hits 4,620, Gives Up Gains Amid Short-Term Surge Concerns

Foreign and Institutional Investors Turn to Selling... Short-Term Surge Weighs on Market
"Favorable Environment for Semiconductor Sector Expected to Continue for Now"

Boosted by the rise of major semiconductor stocks, the KOSPI index hit an all-time intraday high but ended the session with only a slight gain, giving up most of its earlier increase due to concerns over a 'short-term surge.'

The KOSPI index is displayed on the status board in the Shinhan Bank dealing room in Jung-gu, Seoul. Shinhan Bank

After Samsung Electronics' Earnings Announcement, Perceptions of 'No Further Catalysts' Spread... SK Hynix Hits '780,000 Won'

On January 8, the KOSPI index closed at 4,552.37, up 1.31 points (0.03%) from the previous trading day. The index opened at 4,531.46, down 19.60 points (0.43%), but during the session, it traded as high as 4,622.32, setting a new record high. However, strong selling pressure from institutions led the index to finish just slightly higher, ending the day near flat. Foreign investors were net sellers of 112.1 billion won, while institutions sold 1.396 trillion won. Individual investors were net buyers of approximately 1.253 trillion won.

Lim Jeongeun, a researcher at KB Securities, explained, "The KOSPI attempted to break above the 4,600 mark for a second consecutive day, driven by Samsung Electronics' earnings surprise, but gave up its gains due to short-term surge concerns." She added, "As perceptions of 'no further catalysts' spread, profit-taking occurred and the rally stalled." SK Hynix, whose earnings announcement is scheduled for the end of this month, saw strong buying interest on expectations that remain valid, with its stock trading at the 780,000-won level during the session.

Among large-cap stocks, Hanwha Aerospace (7.92%), Hanwha Ocean (7.01%), Samsung Biologics (6.68%), HD Hyundai Heavy Industries (4.49%), Samsung C&T (2.08%), SK Hynix (1.89%), and Celltrion (0.95%) all rose. On the other hand, Kia (-3.40%), Hyundai Motor Company (-2.85%), Shinhan Financial Group (-1.90%), Samsung Life Insurance (-1.73%), Samsung Electronics (-1.56%), Samsung Electronics Preferred Shares (-1.36%), and LG Energy Solution (-1.21%) declined.

"Despite Possibility of Semiconductor Overheating Easing, Market Still Expects 'Further Gains'"

In particular, shipbuilding and defense stocks showed strong performance. Researcher Lim said, "Hanwha Aerospace, a defense stock, surged nearly 8% after news broke that more than 3 trillion won was raised in demand forecasting for a 250 billion won corporate bond issue." She added, "For shipbuilding stocks, positive developments such as HD Hyundai Heavy Industries winning a contract for U.S. Navy logistics support vessel maintenance and expectations for Hanwha Ocean's Canadian submarine project were reflected in the share prices." Statements by U.S. President Donald Trump about increasing the defense budget and geopolitical tensions originating from the United States also had an impact.

By sector, pharmaceuticals (3.18%), transportation equipment and parts (2.30%), electrical and electronics (1.13%), and manufacturing (1.11%) rose. Insurance (-2.44%), non-metallic minerals (-2.06%), textiles and apparel (-1.53%), chemicals (-1.43%), general services (-1.36%), securities (-1.25%), food, beverage and tobacco (-1.10%), metals (-1.10%), and finance (-1.07%) declined.

On the same day, the KOSDAQ index closed at 944.06, down 3.33 points (0.35%) from the previous trading day. Foreign investors were net sellers of 95.5 billion won, while institutions and individuals were net buyers of 32.9 billion won and 60.5 billion won, respectively.

Among the top KOSDAQ stocks by market capitalization, D&D Pharmatech (9.91%), PharmaResearch (6.94%), Caregen (4.44%), LIG ChemBio (3.07%), Peptron (3.04%), Kolon TissueGene (2.97%), ABL Bio (2.38%), AIMED Bio (2.21%), and Alteogen (1.59%) rose. In contrast, HLB (-6.08%), Robotis (-4.91%), Rainbow Robotics (-4.08%), Samchundang Pharm (-3.92%), and Wonik IPS (-3.42%) ended lower.

Researcher Lim added, "While the recent short-term surge centered on semiconductors may lead to some cooling off in the future, the environment for the semiconductor sector is expected to remain favorable for the time being, due to factors such as global companies expanding investment in AI technology. Based on this outlook, the market is anticipating further gains in the medium to long term."