The KOSPI rebounded from a lower open to set a fresh record on a closing basis. SK hynix (000660.KS) also extended its rally for a fifth consecutive session, topping 2.5 million won for the first time on both an intraday and closing basis.
The KOSPI closed at 8,864.24 on Wednesday, up 137.64 points, or 1.58%, from the previous session, according to the Korea Exchange. The index opened at 8,622.13, down 104.47 points, or 1.20%, but soon pared its losses and turned higher.
By investor type, foreign investors alone sold a net 993.1 billion won, while retail and institutional investors bought a net 543.1 billion won and 577.7 billion won, respectively, supporting the index. Foreign investors had been net buyers in the main bourse for three straight sessions through the previous day, but turned net sellers again Wednesday.
Top market-cap stocks were also strong, led by the two semiconductor giants. Samsung Electronics (005930.KS) (1.02%), SK hynix (5.84%), SK Square (6.33%), Samsung Electronics preferred shares (1.12%), LG Energy Solution (1.34%), Samsung Life Insurance (3.71%) and HD Hyundai Heavy Industries (1.29%) closed higher. By contrast, Samsung Electro-Mechanics (-0.78%), Hyundai Motor (-3.44%), Samsung C&T (-1.41%) and Doosan Enerbility (-0.10%) declined as profit-taking emerged.
Overnight on Wall Street, artificial intelligence (AI) technology stocks, including semiconductors, underwent a correction. The Dow Jones Industrial Average set a record high, but the technology-heavy Nasdaq fell 1.15%. Major stocks such as Nvidia (-2.4%), Micron (-6.2%) and Intel (-8.5%) tumbled, and the Philadelphia Semiconductor Index also fell more than 5%.
This weighed on the domestic market at the open, but the index widened its gains on a rebound in large-cap stocks. SK hynix in particular closed at 2.521 million won, up 139,000 won, or 5.84%, from the previous session, reaching the 2.5 million won mark for the first time. Considering its share price stood at just 677,000 won at the start of the year, that represents a surge of about 272%.
SK Square, SK hynix's largest shareholder, also closed at 1.596 million won, up 6.33% from the previous session, setting a 52-week high. Choi Kwan-soon, an analyst at SK Securities, said Wednesday that "direct benefits from expanded shareholder returns are expected, driven by SK hynix's earnings improvement that will begin in earnest this year," sharply raising SK Square's target price to 1.85 million won from 1.45 million won.
Meanwhile, the KOSDAQ closed at 1,031.96, up 13.28 points, or 1.30%, from the previous session. Foreign investors alone bought a net 31.9 billion won, while retail and institutional investors sold a net 20.3 billion won and 15.3 billion won, respectively.
Lim Jung-eun, an analyst at KB Securities, said, "Recently, both markets have shown a pattern of semiconductors rising together and gaining upward momentum late in the session," and forecast that "the outcome of the U.S. Federal Open Market Committee (FOMC) meeting and Kevin Warsh's first press conference will serve as key variables determining the near-term direction."
