The KOSPI, which tried to break above 7,000 early in the session, gave back part of its gains in the afternoon and was trading around the 6,900 level. Large-cap chipmakers such as Samsung Electronics and SK hynix, along with power equipment and battery names, are propping up the index on the back of strong Nvidia earnings. But with retail investors taking profits and the Bank of Korea raising its base rate for a second straight time, decliners are outnumbering advancers in a sharply divided market.
The KOSPI stood at 6,899.33 as of 1:30 p.m., up 91.12 points, or 1.34%, from the previous session, according to the Korea Exchange on the 27th. The index peaked at 6,996.12 at the open and has held gains of more than 1% since, but only 304 stocks rose on the main board while 565 fell, leaving investors with a far chillier read on the market than the headline number suggests.
Retail investors were net sellers of 1.676 trillion won ($1.15 billion) on the main board, focusing on profit-taking. Foreign investors bought a net 94.7 billion won and institutions 380.3 billion won. Other corporations added more than 1 trillion won in net purchases, driven by share buybacks at Samsung Electronics (005930.KS) and SK hynix (000660.KS), but those purchases were concentrated in the market's two largest stocks by capitalization, limiting any spillover to the broader market. The KOSDAQ was at 835.07 at the same time, up 8.20 points, or 0.99%.
The advance was driven by a handful of leading sectors, including semiconductors, batteries and power equipment. Samsung Electronics traded at 265,750 won, up 1.63%, and SK hynix at 1.736 million won, up 2.84%. Samsung Electro-Mechanics rose 3.53% and Hanwha Aerospace 5.24%. Power equipment makers rallied after reports that U.S. President Donald Trump's administration signed an executive order restricting imports of grid equipment from hostile nations, with Hyosung Heavy Industries up 9.40%, HD Hyundai Electric up 9.14% and LS ELECTRIC up 7.94%. Battery shares also climbed across the board on expectations of expanding demand for energy storage systems, with Samsung SDI up 9.88%, LG Energy Solution up 4.99% and POSCO Holdings up 3.81%.
Elsewhere, concerns about tightening liquidity spread after the Bank of Korea raised its growth forecast to 3.3% from 2.6% and lifted the base rate to 3.00% from 2.75%, its second consecutive increase. Stocks outside the market leaders turned lower, with automakers Kia down 4.19%, Hyundai Mobis down 2.91% and Hyundai Motor down 2.70%. Samsung C&T fell 2.71%, Korea Electric Power 4.17%, NAVER 1.59% and Celltrion 1.19%. The KOSDAQ, which briefly turned negative on the rate news, recovered but was up just 0.8%, unable to extend its gains. Retail investors sold a net 70.3 billion won there, while foreign investors bought 46.9 billion won and institutions 26.4 billion won.
Analysts describe the session as a textbook case of index distortion, in which concentrated flows into large-cap chip stocks collide with macro tightening pressure. "Thanks to the Nvidia effect, the index itself is up more than 1%, but most stocks outside the large caps are absorbing the shock of the rate hike and retail selling," a securities firm analyst said. "The gap between leading stocks with clear earnings visibility and the ones being left behind is widening, so a conservative approach is needed."
