KOSPI Achieves Second Consecutive Record High, Driven by Strong U.S. Market Influence

The KOSPI index soared to a record high for the second consecutive day, reflecting strong cues from the bullish U.S. equity markets. Significant foreign buying momentum lifted the benchmark index past the 3,480 mark, with Samsung Electronics — South Korea’s largest stock by market capitalization — also setting a fresh all-time high.

KOSPI Surpasses 3,480 Amid Solid Gains

On Tuesday, the KOSPI closed at 3,486.19, gaining 17.54 points (0.51%) from the previous trading day, as reported by the Korea Exchange. The index kicked off the day at 3,489.46, up 20.81 points (0.60%) compared to Monday’s close of 3,468.65. Despite a brief dip to 3,467.83 during morning trading, the index rebounded to finish securely above the key 3,480 level, underscoring market optimism.

Foreign Investors Lead; Samsung Electronics Hits New Milestone

Foreign investors were the driving force behind KOSPI’s upward trajectory, recording net purchases valued at 280.5 billion won ($208 million). Meanwhile, individual investors and institutional players took the opportunity to secure profits, with net selling of 169.9 billion won and 188.7 billion won, respectively.

Large-cap stocks delivered mixed results, but Samsung Electronics led the charge by gaining 1.44% to close at an unprecedented 84,700 won. Other significant players posted notable gains, including SK Hynix (up 2.85%), LG Energy Solution (up 2.29%), Samsung Biologics (up 2.29%), and Hyundai Motor (up 0.46%). On the downside, Hanwha Aerospace fell by 1.76%, KB Financial dropped 1.28%, and HD Hyundai Heavy Industries slipped by 0.60%.

Market analysts highlighted foreign capital inflows as the prime catalyst for the rally, with semiconductor stocks in particular benefitting from sustained buying interest. Lee Jae-won, an analyst at Shinhan Investment & Securities, stated, “The consistent streak of foreign buying has been instrumental in boosting KOSPI to record levels. The upcoming earnings announcement from Micron Technology could serve as a critical inflection point, potentially driving further momentum in the semiconductor sector.”

KOSDAQ Declines Amid Selling Pressure

While KOSPI celebrated gains, the KOSDAQ index faced challenges, closing slightly lower on Tuesday. The index dropped by 2.15 points (0.25%) to end at 872.21, reversing early optimism after opening higher at 877.18, up 2.82 points (0.32%) from Monday’s close of 874.36. Sustained selling by foreign and institutional investors weighed heavily on performance.

On the KOSDAQ market, individual investors acted as net buyers, purchasing 274.1 billion won worth of shares. However, foreign and institutional investors countered this trend by offloading 155.6 billion won and 91 billion won, respectively.

The performance of key KOSDAQ stocks revealed mixed results. EcoPro BM edged up 0.42%, Peptron rose by 1.32%, and LIG Chem Bio made impressive gains of 2.37%. On the other hand, Alteogen tumbled 5.03%, PharmaResearch fell 4.76%, Rainbow Robotics dropped 2.54%, and ABL Bio declined 0.65%, reflecting uneven dynamics among mid-cap players.

Currency Market Remains Steady

In the forex markets, the Korean won closed at 1,392.6 against the U.S. dollar, showing no movement from the previous session. This stability underscores market neutrality amid global earnings reports and macroeconomic developments that are closely watched by investors.

Key Takeaways from Market Trends

As foreign capital flows continue to support South Korea’s equity market, particularly in the semiconductor and technology sectors, the attention now shifts to upcoming global earnings announcements and macroeconomic indicators. Analysts anticipate that a positive earnings surprise by Micron Technology could amplify foreign investor interest, acting as a short-term catalyst for further gains in the tech-heavy KOSPI. For the KOSDAQ, the focus remains on managing selling pressures while balancing gains across heavyweights to stabilize the index.