KOSPI Reaches New All-Time High as Foreign Buying Drives Market Surge

KOSDAQ Faces Divergent Performance Amid Earnings Season Anticipation

The KOSPI index rallied to a fresh record high Tuesday afternoon, propelled by robust foreign investor activity as the quarterly earnings season approaches. The benchmark index climbed past the 3,740 mark to close at 3,748.89, up 0.52 points (0.01%) from its previous record close of 3,748.37.

Initially opening at 3,732.76—down 15.61 points (0.42%)—KOSPI reversed its losses mid-session, breaking the prior all-time high. This upward trajectory underscores foreign investor confidence despite global uncertainties.

Foreign Buyers Lead KOSPI Rally After Morning Drop

The market's recovery was driven by foreign investors, who were net buyers of KOSPI stocks to the tune of 299.8 billion won ($225 million). Meanwhile, individual and institutional investors offloaded shares worth 85.2 billion won and 233.7 billion won, respectively.

Jae-won Lee, an analyst at Shinhan Investment & Securities, explained the rally, stating, "Concerns surrounding instability in U.S. regional banks initially dampened sentiment, causing a hesitant start to the trading day. However, optimism fueled by strong performances in secondary battery and semiconductor sectors quickly brought life back into the market. Large-cap semiconductor stocks continue to attract bullish foreign inflows."

Major contributors to the index’s advance included Samsung Electronics, which rose by 0.20% to 97,900 won, and SK Hynix, which climbed 2.87%, hitting a record high of 465,500 won. LG Energy Solution also surged 3.21% during the session.

However, not all components fared well. Doosan Enerbility dropped 4.18%, while Hanwha Aerospace fell 2.56%, reflecting mixed results across the broader index.

Q3 Earnings Season: Shifting Market Sentiment

The third-quarter earnings season has come into sharper focus as major companies release their financial results. Analyst Jae-won Lee noted that disappointing earnings from Hyundai Engineering & Construction led to an 8% tumble in the company’s share price. Lee cautioned that as the U.S. begins reporting earnings for its financial giants, investors should prepare for heightened volatility throughout Q3 updates.

This added layer of uncertainty may further influence trading strategies in the near term, particularly as markets assess the outlook amidst global economic dynamics.

Mixed Performance on the KOSDAQ

While the KOSPI thrived, the KOSDAQ closed lower at 859.54, shedding 5.87 points (0.68%) from the previous session’s 865.41. Despite opening positively at 853.17, up 5.21 points (0.61%), gains were eroded as selling pressure prevailed.

Foreign and retail investors emerged as net buyers, accumulating 26.6 billion won and 139.3 billion won in shares, respectively. Institutional investors, however, sold off a net 131.9 billion won, adding to downward pressure.

Performance among KOSDAQ's top-cap stocks diverged notably. EcoPro soared by an impressive 27.04%, while EcoPro BM registered a solid gain of 12.59%. Alteogen rose marginally by 0.23%. On the flip side, Rainbow Robotics declined 3.49%, whereas Samchundang Pharm and Pharmaresearch slipped 2.43% and 1.95%, respectively.

FX Market Update: Slight Decline for Korean Won

The Korean won weakened slightly in the Seoul foreign exchange market, closing at 1,421.2 against the U.S. dollar, down 3.3 won from the previous session’s closing value of 1,421.3.

With investors now looking ahead to crucial earnings reports in the U.S., particularly those of major financial institutions, global market trends remain pivotal. The unfolding earnings season is set to reveal deeper insights into economic resilience amid volatile conditions, setting the tone for both domestic and international investor strategies.