KOSPI Hits All-Time High... KOSDAQ Jumps 4.7%

Big Tech Momentum, Semiconductor Earnings Expectations
Investor Deposits Surpass 100 Trillion Won

The KOSPI reached a record high on the 28th, driven by net buying from individual investors. The KOSDAQ surged by 4.7%, breaking its previous all-time market capitalization record set just the day before.

On the 28th, when the KOSPI index surpassed the 5100 mark for the first time during the trading session, dealers were working in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Jinhyung Kang

The KOSPI closed at 5,170.81, up 85.96 points (1.69%) from the previous session. The index opened at 5,145.39, up 60.54 points (1.19%), and around 11 a.m., it climbed as high as 5,183.44, surpassing the previous intraday all-time high of 5,084.85 set the day before.

Individual investors were net buyers of 1.213 trillion won. Foreign investors and institutions were net sellers, offloading 135.2 billion won and 1.0397 trillion won, respectively. By sector, chemicals (6.21%), electrical products (5.87%), and healthcare equipment and services (4.86%) saw strong gains, while multi-utilities (-3.07%), banks (-2.04%), and entertainment and culture (-0.78%) declined.

Among the top market capitalization stocks, Samsung Electronics and SK Hynix both hit all-time highs. This is attributed to the Philadelphia Semiconductor Index rising 2.4% overnight in the New York market, ahead of earnings announcements from major technology firms in the "Magnificent 7" (M7) group, including Tesla, Microsoft, and Meta. Additionally, optimism over strong earnings was fueled by the upcoming earnings announcements of Samsung Electronics and SK Hynix on the 29th. Samsung Electronics ended trading at 162,400 won, up 1.82% from the previous session. SK Hynix closed at 841,000 won, up 5.13%, and at one point during the session, it climbed to as high as 854,000 won.

The KOSDAQ index also finished the session at 1,133.52, up 50.93 points (4.70%) from the previous session. Institutional investors and foreign investors drove the rally, with net purchases of 2.3008 trillion won and 483.5 billion won, respectively. In contrast, individual investors were net sellers of 2.6456 trillion won.

Lee Jaewon, a researcher at Shinhan Investment Corp., stated, "The KOSPI's record-breaking rally was fueled by the rise of 'Samsung Electronics at 160,000 won' and 'SK Hynix at 850,000 won,' as well as individual investors' net buying of leveraged ETFs. The KOSDAQ index kept pace with the KOSPI, with biotech, robotics, and battery stocks surging on expectations for government policy."

As the domestic stock market continues its upward trend, investor deposits have surpassed 100 trillion won. According to the Korea Financial Investment Association, as of the 27th, investor deposits stood at 100.2826 trillion won, an increase of more than 2.7 trillion won in just one day from 97.5405 trillion won the previous day. Investor deposits refer to the total balance that investors keep in their securities accounts, serving as a type of "waiting capital" for entering the stock market.

Funds are also flowing into domestic equity funds. According to FnGuide, as of the 26th, the total assets under management for 1,054 domestic equity funds stood at 62.7212 trillion won, an increase of 1.0659 trillion won since the start of the year.

Lee Kyungmin and Jeong Haechang, researchers at Daishin Securities, commented, "With expectations building ahead of major corporate earnings announcements, the stock market is showing overall strength. The appreciation of the Korean won has also had a positive effect."