KOSPI Hits Historic High of 3,400 Amid Surge in Retail and Foreign Investor Activity

The KOSPI index soared to unprecedented levels on October 15, crossing the 3,400 threshold for the first time in history and hitting an intraday high of 3,420 points. This landmark rally was fueled by strong buying momentum from retail and foreign investors, further solidifying market confidence. Samsung Electronics, a bellwether stock, continued its impressive ascent, shattering its 52-week high yet again.

By 9:25 a.m., the KOSPI was up 12.67 points (0.37%) to reach 3,408.21, according to the Korea Exchange. The benchmark index started the session at 3,407.78, up 12.24 points (0.36%) from the prior day’s close of 3,395.54. As trading progressed, the index surged past 3,420 points briefly before stabilizing mid-morning.

The rally follows the October 10 milestone, where the KOSPI closed at 3,314.53, eclipsing the previous record of 3,305.21 set in July 2021. With a streak of record-setting sessions, the index entered new territory for the fourth consecutive trading day on October 15.

Dual Momentum: Retail and Foreign Investors Lead Buying Spree

The KOSPI’s surge was predominantly driven by significant inflows from retail and foreign investors. Retail participants led the charge, purchasing KRW 135.2 billion worth of equities, while foreign investors added KRW 97 billion to their portfolios. Conversely, domestic institutional investors offloaded stocks worth KRW 199 billion, acting as net sellers during the session.

Han Ji-young, an analyst at Kiwoom Securities, highlighted the market’s critical juncture, stating, “The domestic stock market, which entered uncharted record territory last week, is testing highs at 3,400 today. The pivotal question is whether this level can serve as a consolidation point.” She noted, “Historically, once the Korean market breaks out of a trading range, it has demonstrated a tendency to maintain upward momentum.”

Sector-Wise Performance: Winners and Losers

The rally revealed a mixed performance across various sectors. Securities (+3.61%) and retail (+1.74%) emerged as top gainers, while transportation equipment (-1.44%), entertainment and culture (-1.88%), and logistics and warehousing (-1.94%) faced notable declines.

Among the index heavyweights, Samsung Electronics climbed 1.99%, or KRW 1,500, to close at KRW 76,900, achieving another intraday high after its previous session’s breakout. Other tech leaders, including SK Hynix (+1.83%) and LG Energy Solution (+0.28%), also registered gains. On the flip side, the automotive sector struggled, with Hyundai Motor (-3.13%) and Kia (-3.02%) posting sharp losses.

Commenting on near-term market dynamics, Han noted, “After the KOSPI rallied approximately 6% last week, some investors are likely seizing the opportunity to realize profits. This sets the stage for a potential tug-of-war around the 3,400 level, as additional buying could clash with profit-taking.”

KOSDAQ Shows Modest Gains Amid Divergent Sector Trends

The KOSDAQ index also recorded gains, albeit more modest ones compared to its larger counterpart. By mid-morning, the KOSDAQ stood at 849.59, reflecting a 1.51-point (0.18%) increase from the prior session. The index opened at 849.64, up 2.56 points (0.30%) before seeing its momentum slow.

Retail investors were the backbone of the KOSDAQ’s advance, purchasing KRW 158.4 billion worth of stocks. However, foreign investors and institutions were net sellers, offloading KRW 96.6 billion and KRW 33 billion, respectively.

Sector performance in the KOSDAQ was a mixed bag. Machinery and equipment (+1.54%) and finance (+0.80%) posted gains, whereas metals (-1.12%) and textiles (-0.89%) underperformed. Among the index’s top stocks, Ecopro (+2.04%), Ecopro BM (+1.43%), and Altogen (+0.71%) advanced, while ABL Bio (-1.42%) and HLB (-1.92%) declined.

Currency Market: Modest Weakening of the Korean Won

In the foreign exchange market, the Korean won slightly depreciated against the U.S. dollar. The won opened at KRW 1,393.0 per dollar, down KRW 4.8 from the previous session’s close of KRW 1,388.2. This moderate weakening reflects ongoing foreign exchange market adjustments amid global economic uncertainties.

The KOSPI’s record-breaking performance signals robust market optimism, supported by dual retail and foreign investor backing. However, as analysts suggest, consolidation at these record levels may depend on the market’s ability to maintain a balanced interplay between new buying activity and profit-taking.

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