KOSPI Surges More Than 4%; Samsung Electro-Mechanics and LG Innotek Jump by Double Digits [Afternoon Market Update]

[Financial News] The KOSPI (Korea Composite Stock Price Index) is rising more than 4% in afternoon trading on the 5th, supported by strength in U.S. tech and semiconductor stocks. Samsung Electro-Mechanics and LG Innotek, which have recently been boosting their competitiveness in components for artificial intelligence (AI) infrastructure, are posting double-digit gains.
As of 1:40 p.m. on the 5th, the KOSPI was at 6,642.49, up 283.54 points, or 4.46%, from the previous session. The index opened at 6,603.48, up 244.53 points, or 3.85%, from the previous close, and climbed as high as 6,674.66 during the session. At one point, the intraday gain widened to 4.96%. Early in the session, a buy-side sidecar was triggered on the Korea Exchange Main Board, temporarily suspending program buy orders after fluctuations in KOSPI 200 Index Futures.
On the Korea Exchange Main Board, foreigners and institutions are each net buying about 1 trillion won and 100 billion won, respectively, while individuals are net selling 1.1 trillion won.
Strength in semiconductor stocks on Wall Street overnight is spilling over into major domestic chipmakers and electronic component stocks. Samsung Electronics is trading at 248,500 won, up 3.54%, while SK hynix is up 7.29% at 1,692,000 won.
Samsung Electro-Mechanics and LG Innotek are surging 13.50% and 15.05%, respectively. Buying is being driven by expectations of stronger demand for semiconductor substrates and the possibility that LG Innotek could supply camera modules for Tesla robotaxis. Hyosung Heavy Industries, up 12.41%, is also gaining on hopes of rising power demand from AI data centers.
By sector, construction is up 5.74%, while machinery and equipment has risen 5.20%, electrical and electronics 5.13%, and manufacturing 4.50%.
At the same time, the KOSDAQ (Korea Securities Dealers Automated Quotations) was at 798.03, up 17.31 points, or 2.22%, from the previous session. The index opened at 794.93, up 14.21 points, or 1.82%, from the previous close, and widened its gains to as much as 803.49 during the session.
In the KOSDAQ market, individuals are net buying 377.3 billion won. Foreigners and institutions are net selling 319.5 billion won and 68 billion won, respectively.
Kang Jin-hyuk, a senior researcher at Shinhan Investment & Securities, analyzed that "the rebound in the domestic stock market was influenced by lower international oil prices, falling interest rates, and easing concerns over AI profitability after Big Tech companies in the U.S. confirmed capital expenditure results."

[email protected] Kim Mi-hee Reporter