Two days after President Lee Jae-myung took office, the KOSPI index reclaimed the 2810 level. Boosted by expectations for the new government's economic and stock market stimulus policies, it continued its "honeymoon rally" today following the previous day's gains. The KOSPI index rose 2.66% the day before as foreign investors made a net purchase exceeding 1 trillion won, comfortably overcoming concerns of a short-term surge.
On the 5th, the KOSPI index recorded 2812.05, up 41.21 points (1.49%) from the previous trading day. This marked the first time the KOSPI index closed above the 2810 level since July 18 (2824.35). The index started at 2790.33, up 19.49 points (0.70%) from the previous close, and gradually expanded its gains, reaching a peak of 2831.11.
In the securities market, foreign and institutional investors made net purchases worth 916.6 billion won and 280.5 billion won, respectively, helping to lift the index. After starting the day with net selling, institutions quickly shifted to net buying. Individuals alone net sold 1.1855 trillion won, offloading profit-taking stocks.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "Expectations for the advancement of the capital market and domestic stimulus policies have rapidly increased since President Lee's election, and along with the momentum of foreign investment, institutions have also sustained buying pressure, leading to consecutive gains. The growing expectations for a stronger won acted as a driving force for the improvement in foreign investment supply."
In the Seoul foreign exchange market, the weekly closing exchange rate for the won against the U.S. dollar (as of 3:30 p.m.) was 1358.4 won, down 11.1 won from the previous day.
On the domestic stock market, undervalued sectors such as semiconductors, automobiles, and the internet, which had been noted as neglected, demonstrated strength as foreign investment supply improved. Major semiconductor stocks including Samsung Electronics and SK hynix, along with SIMMTECH and TES in the KOSDAQ market's materials and components sector, experienced positive momentum.
Kakao, which is set to release a new platform in collaboration with OpenAI in the second half of this year, rose by about 6% as expectations for artificial intelligence (AI) policies increased. NAVER also saw a 3% rise following the news that CEO Choi Soo-yeon met with Netflix executives. Saltlux, listed on the KOSDAQ and considered a beneficiary of the new government's AI initiatives, surged 12.59%.
After protracted legal disputes, KHNP signed the final contract for the Czech nuclear power plant, resulting in significant gains for KEPCO E&C, Doosan Enerbility, and KEPCO KPS. The glass substrate theme also attracted substantial investment. Samsung Electro-Mechanics rose by about 8% following news of negotiations with Apple for semiconductor glass substrate supply. SKC, Philoptics, and JNTC also saw gains.
Hyundai Motor (2.31%), Kia (2.34%), LG Energy Solution (1.39%), and POSCO Holdings (4.48%) also closed strongly. However, financial stocks that had surged the previous day, including KB Financial, Shinhan Financial Group, Hana Financial Group, and Meriz Financial Group, experienced price corrections.
Lee Jae-won, a researcher at Shinhan Investment Corp., stated, "The KOSPI has entered a phase of short-term overbought conditions, indicating the possibility of a short-term correction, so caution is warranted." He added, "Given the upcoming U.S. employment report, which is a critical indicator influencing market interest rates, it's essential to monitor that closely."
On the same day, the KOSDAQ index recorded 756.23, up 6.02 points (0.80%) from the previous trading day. The index opened at 751.59, up 1.38 points (0.18%), and maintained its upward trend, peaking at 761.17 during the session. This is the highest level since November 6 of last year (761.01).
In the KOSDAQ market, foreign and institutional investors made net purchases worth 38.7 billion won and 9.1 billion won, while individuals net sold 42.4 billion won.
In response to TSMC's optimistic performance outlook, semiconductor stocks such as LEENO Industrial and Techwing exhibited strong growth. Peptron, which recorded a lower limit on the previous day, showed signs of rebound on announcements that technical evaluations with Eli Lilly were progressing smoothly but ultimately closed down over 2%. With continued expectations for local currency policies, KONA I surged 21.36% again today following the previous day's increase.