KOSPI Hits All-Time High Again; '7,000' Is Just 1% Away

[Financial News] The much-anticipated 7,000-point KOSPI is now within sight. Driven by strong buying from foreign investors and institutions, the KOSPI jumped by more than 300 points in a single session and climbed above the 6,900 level.
According to the Korea Exchange (KRX) on the 4th, the KOSPI closed at 6,936.99, up 338.12 points, or 5.12%, from the previous trading day, setting a new all-time high for the second consecutive session. The KOSDAQ also rose 21.39 points, or 1.79%, to 1,213.74, staying above the 1,200 mark. On that day alone, foreign investors and institutions bought a net 3.0194 trillion won and 1.936 trillion won, respectively, in the KOSPI Market, driving the index higher. Individual investors, meanwhile, sold more than 4 trillion won worth of shares.
By sector, semiconductor stocks stood out. In particular, SK hynix closed at 1,447,000 won, up 12.52%, bringing its market capitalization to 1,031.2803 trillion won. It was the first time the company had surpassed the 1,000 trillion won mark. Samsung Electronics finished 5.44% higher at 232,500 won. Sentiment was also lifted as the Middle East War shifted into a negotiation phase, helping stabilize the won and support investor confidence.
Kang Jin-hyuk, a researcher at Shinhan Securities, said, "The KOSPI has resumed its record-setting rally as gains led by semiconductors and other Artificial Intelligence (AI) value-chain stocks continue." He added, "The return of foreign fund flows is the key driver behind the index's rise."
Brokerages are leaning toward further gains. Yang Il-woo, a researcher at Samsung Securities, said, "Earnings estimates are being raised rapidly, especially for semiconductors, and valuation re-rating is under way as Return on Equity (ROE) improves." He added, "Expanding demand for AI infrastructure is supporting the market's upward structure."
Still, the possibility of increased short-term volatility remains, depending on macro variables such as oil prices and interest rates. A securities industry official said, "Foreign buying and earnings momentum are pushing the index higher, but the pace of the rally has been so fast that concerns over short-term overheating are also growing." The official added, "Near the 7,000 level, investors should be prepared for profit-taking and greater volatility from external factors."
dschoi@fnnews.com Choi Doo-seon Reporter