[Opening Market] KOSPI Starts Up 2.96% at 6773.92 on Chip Rally

On August 13, South Korea's KOSPI stock index began its day with a significant upward surge, soaring 2.96% to reach 6,773.92 points after the opening bell. This early market momentum was driven by a strong rebound in artificial intelligence (AI) and large-cap semiconductor stocks, which were buoyed by a strong performance from the New York stock market overnight. As the trading session progressed, investor sentiment continued to improve, particularly around large-cap IT stocks.

The positive opening was further supported by the US Consumer Price Index (CPI) data released overnight, which came in at the expected 3.4% year-on-year. This easing of inflation concerns and the potential for reduced Federal Reserve rate hikes provided additional reassurance to investors. The surge in the Philadelphia Semiconductor Index (+2.49%) also contributed to the strong momentum for foreign capital inflow into the Korean stock market.

The KOSDAQ index continued its upward trend, with buying activity spreading across AI software, semiconductor materials, parts, equipment stocks, as well as the pharmaceutical and biotech sectors. As of 9:50 a.m., the index was trading at 860.69, up 1.78 points (0.21%) from the previous trading day.

Investor behavior in the KOSPI and KOSDAQ markets showed a stark contrast between foreign and institutional investors on one side and retail investors on the other. Foreign and institutional investors were heavily buying large-cap semiconductor stocks, with a net purchase of approximately 1.25 trillion won ($882 million). Institutional investors showed a net buying dominance of around 480 billion won, while retail investors were selling shares, with a net sale of approximately 1.79 trillion won.

Among the top performers in the market were Samsung Electronics and SK hynix, the two leading semiconductor stocks. As concerns about "AI peak-out" were seen as overblown, foreign investors poured funds into Korean semiconductor bellwether stocks. Samsung Electronics traded around 269,000 won, up 13,500 won (+5.28%) from the previous day, while SK hynix surged by 118,500 won (+7.88%) to 1,622,500 won.

The decline in the won/dollar exchange rate, driven by a weaker dollar following stable US inflation indicators and foreign net buying into the domestic stock market, added to the positive market sentiment. The KOSPI's strong performance and the favorable exchange rate helped reinforce the bullish sentiment in the market.