KOSPI Achieves All-Time High Driven by Foreign and Institutional Buying Momentum

South Korea’s benchmark stock index, the KOSPI, reached an unprecedented milestone on October 22, fueled by strong foreign and institutional buying that reignited market momentum. Shortly after the U.S. Federal Reserve announced a rate cut, the index surged during intraday trading to surpass the 3,480 level, ultimately closing at 3,468.65, marking a 0.68% gain from the previous close.

According to the Korea Exchange, the KOSPI opened the session at 3,463.84, climbing 18.60 points or 0.54% and maintaining its upward trajectory throughout the day. Although the index briefly broke through the 3,480 ceiling, late trading adjustments moderated the closing figure.

Milestones Amid Shifting Market Sentiment

This historic leap further extends a series of record-setting performances by the KOSPI, which first broke past its previous high on October 10. Surpassing its former peak of 3,305.21 from July 6, 2021, the index has delivered five consecutive record-setting closes in October alone. A brief pause ensued due to profit-taking and caution surrounding the Federal Open Market Committee (FOMC) meeting.

Following the Fed’s rate cut announcement, investor confidence rebounded sharply. Foreign and institutional investors resumed aggressive buying, propelling the index to fresh highs. However, individual investors took a more conservative approach, selling shares worth a net 872.7 billion won, likely to realize profits. In contrast, foreign investors purchased a net 551.6 billion won, and institutions acquired 296 billion won, driving the rally.

Impact of Key Stocks and Sector Highlights

Market bellwethers displayed a mixed performance during the session. Samsung Electronics, the largest stock by market capitalization within the KOSPI, spearheaded the index’s rise by surging 4.64% to reach a record high of 83,400 won. Other notable gainers included Hyundai Motor, advancing 1.87%, and Doosan Enerbility, up 2.63%. Meanwhile, Samsung Biologics posted a smaller gain of 0.10%.

Among the decliners were SK Hynix, down 0.57%, and Hanwha Aerospace, which fell slightly by 0.10%.

Market analysts, including Jae-won Lee from Shinhan Investment Corp., emphasized the outsized influence of Samsung Electronics on the broader index. “Samsung’s contribution to the KOSPI’s movement cannot be overstated, given its significant market cap weight,” remarked Lee. With Samsung’s preliminary Q3 earnings slated for release next month, investors are closely monitoring developments that may affect its price momentum.

Lee pointed to historical trends suggesting robust medium-term upside potential for the index. “Following new record highs on four previous occasions, the KOSPI gained an average of 16.3% over the subsequent four months, largely due to consistent foreign investor flows—similar to the trend we’re observing now,” he added.

Additionally, Lee cited the global semiconductor rally as a critical factor sustaining market momentum, noting Micron’s upcoming financial results as an influential variable. “Micron’s guidance and earnings performance will likely serve as a pivotal indicator for maintaining the strong demand in semiconductors,” he explained.

KOSDAQ Maintains Upward Trajectory

South Korea’s secondary index, the KOSDAQ, also posted gains, closing 1.30% higher at 874.36, an 11.25-point increase from the previous day. The session’s opening at 869.06 marked a steady rise of 5.95 points or 0.69%, with gains extending throughout trading hours.

Retail investors exhibited bullish behavior in the KOSDAQ market, net buying shares valued at 173.3 billion won. Conversely, foreign investors and institutions took a bearish approach, selling 75.5 billion won and 12.6 billion won worth of shares, respectively.

Major KOSDAQ stocks showed mixed results, with Alteogen surging 7.51%, Peptidream jumping 5.18%, and Samchundang Pharm skyrocketing by 13.0%. On the downside, EcoProBM slipped 0.67%, HLB dipped 1.52%, and EcoPro edged down by 0.20%.

Won Strengthens Marginally Against Dollar

In the Seoul foreign exchange market, the South Korean won appreciated slightly against the U.S. dollar, with the exchange rate closing at 1,392.6 won per dollar. This marks a minor increase of 1.0 won compared to the previous day’s close of 1,393.6 won.

As South Korea’s capital markets continue to benefit from strong foreign investor flows and institutional confidence, both KOSPI and KOSDAQ showcase resilience amid volatile global economic conditions. With key earnings releases and macroeconomic developments looming, investors remain focused on factors influencing medium-term market performance.