KOSPI Reaches Historic High of 3,480 Amid Robust Institutional and Foreign Buying

South Korea’s KOSPI index achieved a significant milestone on October 22, surpassing the historical 3,480 mark. This rally was fueled by strong institutional and foreign investor participation, underscoring sustained bullish market sentiment. Initial expectations of a pause after consecutive highs were shattered as the market continued its upward momentum.

Opening at 3,463.84, a rise of 18.60 points (0.54%) from the prior session’s close of 3,445.24, the KOSPI quickly climbed to an intraday record before settling at 3,464.37 at 9:20 a.m. KST, reflecting a slight dip of 19.13 points (0.56%) from the previous close.

October: A Landmark Month for KOSPI

October has been remarkable for the KOSPI index, punctuated by record-breaking performances. On October 10, the benchmark closed at 3,314.53, surpassing its previous all-time high of 3,305.21 achieved on July 6, 2021. This feat marked the beginning of a five-day streak of record closes.

Although the index experienced a brief retreat ahead of key events such as the Federal Open Market Committee (FOMC) meeting, it regained ground following the U.S. Federal Reserve's announcement of an interest rate cut on October 18. After minor fluctuations on October 19, the KOSPI resumed its march to fresh highs, buoyed by solid trading activity.

Han Ji-young, a market analyst at Kiwoom Securities, stated, "With pivotal events, including U.S. labor and inflation data as well as the Federal Reserve’s rate decision, now behind us, market sensitivity is expected to remain subdued leading into November." Nevertheless, Han emphasized the importance of monitoring inflation-related risks. "The upcoming earnings report from U.S.-based Micron Technology on October 24 will be critical amid growing market fatigue from recent rapid rallies," Han added.

Foreign and Institutional Buying Dominate Trading Activity

Strong foreign and institutional activity was the driving force behind the KOSPI’s upward movement. Foreign investors were net buyers, acquiring 1.77 trillion won worth of shares, while institutional investors added 1.22 trillion won. Conversely, individual investors were net sellers, offloading shares totaling 2.78 trillion won.

Performance by sector showed varied results. Gains were recorded in medical precision equipment (1.02%), utilities (1.35%), and construction (0.33%). However, declines were noted in telecommunications (-0.92%), securities (-0.24%), and IT (-0.78%) sectors.

Samsung Electronics Leads Top-Cap Stock Surge

Samsung Electronics continued its remarkable ascent, climbing 4.14% to close at 83,000 won, marking a 52-week high. The stock’s performance was bolstered by favorable trends in South Korea’s semiconductor industry and increased investment in artificial intelligence (AI) technologies by U.S. companies, which have spilled over into domestic markets.

In contrast, SK Hynix reported a decline of 1.27%, while Samsung Biologics dipped slightly by 0.10%. Analysts stress that domestic policy momentum coupled with international tech-sector investments have been instrumental in propelling the KOSPI's historic performance.

Mixed Sentiment Evident in KOSDAQ Index

The KOSDAQ index mirrored the broader market's volatility, posting gains while reflecting sector-specific challenges. As of 9:20 a.m. KST, the KOSDAQ was up 9 points (1.04%) at 872.11, having opened at 869.06, a rise of 5.95 points (0.69%) from the previous session’s close of 863.11.

Unlike the KOSPI, individual investors led buying activity in the KOSDAQ market, purchasing shares worth 1.65 trillion won. Foreign and institutional investors were net sellers, divesting 849 billion won and 659 billion won, respectively.

Sector performance within the KOSDAQ showed a mix of gains and declines. Medical precision equipment (1.07%), machinery (1.05%), electronics (1.08%), and metals (0.17%) posted gains. Meanwhile, transportation equipment and parts (-0.90%), IT (-0.06%), and leisure & culture (-0.55%) registered losses.

Divergent Results Among KOSDAQ Top Stocks

Leading stocks on the KOSDAQ index showed disparate outcomes. Alteogen surged 9.42%, Samchundang Pharm advanced 3.08%, and Rainbow Robotics rose 1.61%. However, EcoProBM slipped 0.51%, EcoPro fell 0.30%, and Rainbow Robotics declined by 1.45%, adding variability to the index.

Currency Market and Macroeconomic Developments

The Seoul foreign exchange market reflected cautious optimism. The U.S. dollar opened at 1,398.5 won, an increase of 4.9 won from the previous session’s closing price of 1,393.6 won.

Investor focus will remain on forthcoming corporate earnings announcements and macroeconomic developments, as global and local markets evaluate the durability of ongoing market momentum. Despite fatigue from repeated short-term rallies, the KOSPI's record-setting streak signals resilience and optimism in South Korea's financial landscape.