SEOUL — The KOSPI index closed at a new all-time high on September 12, continuing its record-breaking streak for a third consecutive trading day. Driven by strong buying from foreign and institutional investors, the benchmark index soared past its previous record to end the day near the 3,400-point mark.
The KOSPI finished trading at 3,395.54, up 51.34 points (1.54%) from the previous day. This significantly surpassed Wednesday’s closing record of 3,344.20. The index opened strong at 3,374.65, a 0.91% increase, and maintained its upward momentum throughout the day, reaching its intraday high at the closing bell.
Investor Activity and Market Drivers
On the main KOSPI board, foreign investors were the primary drivers, net-purchasing a massive 1.4162 trillion Korean won (approximately $1.02 billion USD). Institutional investors also contributed to the rally with net purchases of 611.4 billion won. In contrast, individual investors were the sole net sellers, offloading 2.0272 trillion won, likely to realize profits from the recent market surge. Foreign investors also showed a strong bullish sentiment in the futures market, with a net purchase of 215.1 billion won in KOSPI 200 futures.
Analysts point to shifting global monetary policy expectations as a key catalyst for the market's performance. The overnight surge in U.S. stocks, which saw all three major indices hit new highs despite signs of stagflation, fueled investor confidence. The prevailing sentiment is that a weakening U.S. labor market could prompt the Federal Reserve to adopt a more accommodative monetary policy.
Daeishin Securities researchers Lee Gyeong-min and Jeong Hae-chang noted that the market interpreted the labor market weakness as increasing the urgency for the Fed to cut interest rates. They highlighted that a September rate cut is now widely considered a foregone conclusion, with the probability of three rate cuts by the end of the year rising to 73.6%. This renewed optimism for rate cuts and a corresponding drop in bond yields attracted a significant inflow of foreign capital, propelling the KOSPI’s ascent.
Tech Giants Lead the Charge
The market's impressive performance was spearheaded by Korea's technology giants. Samsung Electronics and SK Hynix both hit new 52-week highs. Samsung Electronics finished the day up 2.72% at 75,400 won, after reaching an intraday high of 75,600 won. SK Hynix, a leader in the semiconductor industry, surged even more dramatically, jumping 7.00% to close at 328,500 won, a new all-time high after reaching 329,500 won earlier in the session.
Other major market capitalization stocks also performed well. LG Energy Solution (+1.57%), Samsung Biologics (+0.19%), Hyundai Motor (+0.22%), KB Financial (+1.45%), and NAVER (+1.29%) all saw gains. However, some stocks, including Hanwha Aerospace (-0.30%) and Kia (-0.66%), closed in negative territory.
The broader market saw strong performance across several sectors. The metals (+3.97%), electrical and electronics (+3.10%), and IT services (+3.10%) sectors were among the top performers, while sectors like electric and gas (-1.38%) and construction (-0.83%) experienced declines.
The KOSDAQ index also had a positive day, rising 1.48% to close at 847.08. Similar to the KOSPI, the KOSDAQ's rise was led by foreign and institutional buyers, with individuals acting as net sellers. Top KOSDAQ stocks showed mixed results, with gains for Alteogen (+3.91%) and EcoPro BM (+1.80%), while others like Peptron (-1.29%) and Lino Industrial (-1.31%) saw minor losses.
Total trading value for the day was robust, with 13.8967 trillion won on the KOSPI market and 8.2513 trillion won on the KOSDAQ. The alternative trading system, NexTrade, also recorded a combined trading value of 8.7264 trillion won for its pre-market and main market.
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