Korean stock market surges to 7,000 as Samsung Electronics' market cap tops 1.5 quadrillion won [The dawn of the 7,000 era]

The Korean stock market has opened a new era, breaking through the unprecedented 7,000-point level. Heavy foreign buying in semiconductor stocks pushed the index past the milestone in a single move.
According to the Korea Exchange (KRX) on the 6th, the KOSPI Composite Index closed at 7,384.56, up 447.57 points, or 6.45%, from the previous trading day. That marked a new all-time high.
At one point during the session, the index surged more than 7%. Five minutes after breaking above 7,000, a buy sidecar was triggered for KOSPI 200 Index futures. A sidecar is a market-stabilization mechanism that suspends program trading quotes for five minutes when sharp futures swings raise concerns about shocks in the cash market.
Semiconductor stocks led the move into the 7,000 range. Samsung Electronics Co., Ltd. jumped more than 14% on the day, lifting its market capitalization above 1.5 quadrillion won. Among Asian companies, it became only the second to surpass $1 trillion in market value after Taiwan Semiconductor Manufacturing Company Limited (TSMC). SK hynix also rose more than 10%, helped by expectations for High Bandwidth Memory (HBM) demand and the benefits of expanding investment in Artificial Intelligence (AI) servers.
Strength in U.S. semiconductor stocks also boosted investor sentiment. International Data Corporation (IDC) projected that DRAM sales will triple this year and NAND sales will double. In U.S. trading, Micron Technology, Inc. and SanDisk Corporation each surged 11% to 12%, while the Philadelphia Semiconductor Index (SOX) rose more than 4%. Advanced Micro Devices, Inc. (AMD) also climbed more than 16% in after-hours trading following its earnings release.
Foreign capital inflows also helped drive the index higher. With hopes for a ceasefire in the Middle East easing pressure on oil prices and the volatility index, analysts said foreign investors concentrated their spot and futures buying on large semiconductor names. On the day, foreigners bought a net 318.85 billion won in the main bourse.
Kang Jin-hyuk, senior analyst at Shinhan Securities, said, "As tensions in the Middle East ease and foreign funds flow in, a semiconductor-led melt-up is continuing." He added, "Easing regulations on foreign omnibus accounts and expectations for stronger AI memory demand have fueled the sharp gains in Samsung Electronics and SK hynix."
Lee Jae-won, an analyst at Yuanta Securities Korea Co., Ltd., said, "The KOSPI's 12-month forward earnings per share (EPS) keeps being revised upward, and the current 12-month forward price-earnings ratio (PER) is only around 7 times. Even after breaking above 7,300, the market still remains close to deep value territory." He added, "As long as Big Tech continues to expand AI investment, the Korean market is likely to extend its record-setting rally." He cautioned, however, that "the concentration in large semiconductor stocks is becoming a burden, with far more declining stocks than advancing ones."
dschoi@fnnews.com Choi Du-seon Reporter