KOSPI Ends Near 8,000 as Chip Giants Rally

Samsung Electronics and SK Hynix hit record highs, lifting the benchmark to 7,981.41

Display board at the dealing room of KB Kookmin Bank headquarters in Yeouido, Seoul, on May 14 (photo provided by KB Kookmin Bank)

The KOSPI, buoyed by a record-high run in heavyweight semiconductor stocks, is on the verge of capturing the 8,000 mark. As a rally in U.S. technology shares stimulated investor sentiment in the domestic market, the benchmark index rewrote its all-time high for a second consecutive session.

On 14 May, the KOSPI closed at 7,981.41, up 137.40 points (1.75%) from the previous trading day. It surpassed the prior record high of 7,844.01 set the day before, tracing a steep upward curve.

The main protagonists of the market on May 14 were Samsung Electronics and SK Hynix, the two leading semiconductor names. Samsung Electronics surged as high as 299,500 won intraday to set a fresh record high, and ultimately finished at 296,000 won, up 4.23%. SK Hynix also touched 1,994,000 won intraday to write a new all-time high, and went on to pull off the impressive feat of breaking above the 2,000,000-won level in pre-market trading.

The strength of the domestic market was largely driven by the overnight performance on Wall Street, where the Nasdaq and the S&P 500 posted record highs. Despite the negative news of a rise in the U.S. Producer Price Index (PPI), big tech companies such as Nvidia and Alphabet showed strength, effectively spreading warmth to local semiconductor and technology shares.

In terms of flows, aggressive buying by individual investors underpinned the index’s advance. In the KOSPI market, individuals alone posted net purchases of 2,810.1 billion won, lifting the index, while foreigners and institutions focused on profit-taking with net sales of 2,855.2 billion won and 208.2 billion won, respectively.

However, geopolitical risks emerging at one point during the U.S.-China summit talks constrained the upside of the index. After Chinese President Xi Jinping delivered a stern warning message regarding the Taiwan issue, caution flowed into the market, temporarily slowing the pace of gains.

Lee Kyung-min, a researcher at Daishin Securities, said, “Expectations were high for the U.S.-China talks, but concerns about a potential clash related to Taiwan emerged, turning the market cautious.” He added, “With internal risks still remaining, such as concerns over a potential strike by Samsung Electronics’ labor union, the concentration within the semiconductor sector showed a trend of easing somewhat.”

The KOSDAQ also maintained a solid tone, closing at 1,191.09, up 14.16 points (1.20%) from the previous session. In particular, Alteogen, having shaken off concerns over a patent dispute, jumped 8.76% to reclaim the No. 1 spot by KOSDAQ market capitalization, while secondary-battery related stocks such as EcoPro BM and EcoPro also rose in tandem to provide support.

Jung Suk-yee