[Opening Market] Korean Stocks Surge Above 7,200 on Foreign Buying Rally
The KOSPI and other indicators are displayed on the status board at the Hana Bank dealing room in Jung-gu, Seoul, on Aug. 18, as the index started higher and recovered the ‘7,000-point’ mark in early trading. [Yonhap]On this day, the domestic stock market soared above the 7,200 mark, driven by the s
On August 18, the Korean KOSPI stock index surged above the crucial 7,200-point mark, marking a significant rally in the domestic market. This upward momentum was primarily driven by strong performance in large-cap semiconductor stocks, which had returned from a National Liberation Day holiday break. Despite a weak showing from the New York stock market due to sluggish retail sales and Middle East risks, investor sentiment remained buoyant in the Korean market.
As of 9:50 a.m., the KOSPI index was trading at 7,195.44, a remarkable increase of over 217.50 points (+3.12%) from the previous trading day. This marked the first time in 17 trading days since July 24 that the KOSPI started above the 7,000-point level. The KOSPI index had previously reached 7,000.78, but fell to 6,690.62 and then 5,663.24 before recovering to its current position.
Foreign investors played a pivotal role in the market rally, recording a net buying trend of over 620 billion won ($438.2 million) in early trading, centered on large-cap semiconductor stocks. In contrast, retail investors and institutional investors were net sellers, with losses amounting to approximately 459.3 billion won and 144.5 billion won, respectively.
This imbalance in supply and demand favored the upward trend, with foreign investors maintaining their buying momentum and counteracting profit-taking by domestic investors.
Among the key market movers, Samsung Electronics and SK hynix, both leaders in the electrical and electronic sector, witnessed stellar performances. Samsung Electronics shares surged by 3.01% to 3.46%, while SK hynix shares climbed by 5.84% to 6.38%. Other notable gains were seen in SK Square (+3.99%), LG Innotek (+3.52%), and LG Electronics (+2.79%). On the downside, LG Energy Solution (-3.11%) and Samsung Biologics (-1.29%) experienced declines.
The Seoul foreign exchange market also reflected the market's dynamics, with the dollar/won exchange rate initially at 1,415.0 won, falling alongside the influx of foreign funds into domestic stocks, and later stabilizing at 1,410.56 won. Market experts attributed the shift in foreign supply and demand to net buying by foreign investors and the increasing enthusiasm for major semiconductor sectors, which pointed to an improving underlying structure of the domestic stock market.
Despite the short-term surge, they anticipated that the positive momentum centered on semiconductors would continue at least in the early part of the week.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
