Samsung Electronics and SK Hynix Surge as KOSPI Reclaims the 6,600 Level, Triggering a Buy Sidecar [Afternoon Market Update]

[Financial News] Korea's benchmark stock index jumped more than 5% intraday as large-cap semiconductor stocks surged for the first time in a while. The rally was driven by heavy net buying, led by foreign investors and institutions. At 2:45 p.m. on the 12th, KOSPI was trading at 6,583.75, up 238.22 points, or 3.75%, from the previous session. The index opened 1.47% higher at 6,438.50. It later climbed as much as 5.09% to 6,668.43, triggering a program buy sidecar for the first time in five trading days.
On the Korea Exchange Main Board, individual investors took profits by selling 318.58 billion won worth of shares. Foreign investors were net buyers of 2.5004 trillion won, while institutions bought 886.3 billion won.
By sector, electrical and electronics rose 6.17%, manufacturing gained 4.82%, and construction advanced 2.58%. Pharmaceuticals fell 3.21%, food and tobacco dropped 2.1%, and nonmetals declined 1.0%.
Samsung Electronics and SK hynix helped lift the index, with both stocks surging intraday by as much as 8.77% and 8.7%, respectively. The gains were seen as a result of strong semiconductor exports and bargain buying after SK hynix ADR prices in New York rose nearly 5%.
Most of the large-cap stocks were also higher. SK Square rose 9.21%, Samsung Electro-Mechanics gained 5.71%, LG Energy Solution added 1.69%, and Hyundai Motor Company climbed 1.61%.
Overnight, all three major indexes on the New York stock market closed lower. The Dow Jones Industrial Average fell 0.34%, while the S&P 500 Index and the NASDAQ Composite Index declined 0.32% and 0.6%, respectively.
Kang Jin-hyuk, a researcher at Shinhan Investment Corp., said, "As foreign investors continue to pour in non-program buying, strength is persisting in large-cap stocks such as Samsung Electronics and SK hynix." He added, "The uptrend is continuing despite prolonged Middle East negotiations and caution ahead of the July Consumer Price Index."
At the same time, KOSDAQ was trading at 860.26, up 2.42 points, or 0.28%, from the previous session. The index opened 0.35% lower at 854.85, but turned higher in afternoon trading.
On the KOSDAQ market, individual investors were net buyers of 293.5 billion won, while foreign investors and institutions were net sellers of 143.6 billion won and 143.4 billion won, respectively.
[email protected] Park Ji-yeon Reporter