SK hynix eases AI peak fears, pushing KOSPI above 6,000

The South Korean stock market, measured by the KOSPI index, experienced a notable surge on Wednesday, surpassing the 6,000 level for the first time. In large part, this movement was driven by SK hynix, a prominent player in the semiconductor industry, which eased concerns over a potential AI market peak. SK hynix's forecast of semiconductor shortages through 2030, coupled with record earnings and a comprehensive shareholder return plan, contributed significantly to the positive sentiment.

At the close of trading, the KOSPI index was reported at 6,012.44, marking a 6.63 percent increase from the previous session. This upward trend was mirrored by a 2.33 percent opening gain, sparking buy activity among investors at 9:54 a.m. The benchmark index's robust start to the day prompted a second consecutive day of increased trading interest.

Among the top-performing companies were chip leaders, with SK hynix leading the charge. The semiconductor giant's shares rose by 10.89 percent, closing at 1,487,000 won ($1,110.53). Similarly, Samsung Electronics also saw a significant gain, with its shares climbing 9.01 percent to 242,000 won.

The market activity was not limited to domestic investors, as foreign and institutional investors were observed as net buyers, acquiring shares worth 815.8 billion won and 960.8 billion won respectively. Conversely, retail investors appeared to be net sellers, offloading shares valued at 1.8 trillion won.

The anticipation of semiconductor shortages extending through 2030, as projected by SK hynix, was a key factor in the company's positive outlook. During its earnings call, the company revealed a 100 trillion won shareholder return plan, further bolstering investor confidence.