KOSPI Reclaims 7,800 on Samsung Deal, Putting 300,000-Won Samsung Electronics and 2 Million-Won SK hynix Within Reach

The domestic stock market reversed course after three straight sessions, driven by the dramatic settlement of Samsung Electronics' labor negotiations, aggressive institutional buying, and easing U.S. Treasury yields. In particular, the KOSPI rebounded by more than 600 points in a single day, posting its biggest gain on record.
According to the Korea Exchange (KRX) on the 21st, the KOSPI closed at 7,815.59, up 606.64 points, or 8.42%, from the previous session. During the session, a buy-side circuit breaker was triggered as program buying surged. The 606.64-point rise was the largest ever. The previous record was 490.36 points on March 5.
Institutions led the rebound. Institutional investors made net purchases of more than 280 billion won in the main bourse, lifting the index higher. Foreign investors, who had been selling shares worth trillions of won a day, sharply reduced their net selling to the 200 billion won range. U.S. Treasury yields, which had rattled markets recently, also showed signs of stabilization. The 30-year U.S. Treasury yield fell 6.6 basis points from the previous day to 5.114%. The benchmark 10-year U.S. Treasury yield also ended down 10 basis points at 4.569%. Market participants said expectations for progress in talks between the United States and Iran have eased concerns about inflation and additional rate hikes.
Jin-hyuk Kang, a senior analyst at Shinhan Securities Co., Ltd., said, "Investor sentiment recovered quickly as Samsung Electronics' labor deal, hopes for easing tensions in the Middle East, and strong results from NVIDIA came together." He added, "Broad strength in large-cap stocks such as Samsung Electronics and SK hynix helped the KOSPI reclaim the 7,800 level, and the buy-side circuit breaker was also triggered."
Samsung Electronics jumped more than 8% on the day and traded as high as 295,000 won. SK hynix also surged more than 11%. In a second-half outlook report released that day, Kim Yong-gu, an analyst at Yuanta Securities Korea Co., Ltd., forecast that "the KOSPI will move within a range of 7,600 to 10,000 in the second half of this year" and added that "the record-setting bull market cycle is likely to continue."
Earlier, Nomura Securities also raised its KOSPI target to 11,000. It set Samsung Electronics' target price at 590,000 won and SK hynix's at around 4 million won, highlighting the possibility of a prolonged semiconductor supercycle.
Lee Jae-won, an analyst at Yuanta Securities Korea Co., Ltd., said, "Compared with the period in March when war-related concerns pushed oil prices, interest rates, and exchange rates sharply higher and dragged the KOSPI down to around the 5,000 level, valuation pressure is now lower." He added, "Beyond semiconductors, sectors that had fallen too far, including shipbuilding, machinery, and brokerage, are now looking more attractive from a price standpoint."
dschoi@fnnews.com Choi Du-seon Reporter