Foreign investors buy big semiconductors, lifting KOSPI for a third day while won-dollar rate ends up 2.4 won at 1504.2
An electronic board at the dealing room of KB Kookmin Bank in Yeouido, Seoul, on the afternoon of April 7. (Photo courtesy of Kookmin Bank)
The KOSPI closed higher for a third consecutive trading day, buoyed by net buying from foreign investors and Samsung Electronics’ strong first-quarter performance. In contrast, the KOSDAQ fell, showing a divergent trend from the KOSPI, due to weakness in pharmaceutical and bio stocks despite inflows from foreign buyers.
According to the Korea Exchange on April 7, the KOSPI closed at 5494.78, up 44.45 points (0.82%) from the previous trading day. The index started the day at 5552.19, up 101.86 points (1.87%), and approached the 5600 level early in the session. However, it later pared some of its gains as supply and demand from foreign and institutional investors wavered and geopolitical uncertainties came to the forefront. At one point during the session, the index even turned negative, falling to the 5450 level, but it successfully rebounded late in the day.
In the KOSPI market, foreign investors led the index’s rise with net purchases of 406.9 billion won (approximately $271.2 million). In contrast, retail investors and institutional investors were net sellers of 342.6 billion won (approximately $228.4 million) and 414.1 billion won, respectively. Foreign investors, who were net sellers early in the session, switched to net buying in the latter half, while retail investors shifted from buying to selling. Institutions alternated from selling to buying before returning to a selling position. The KOSPI’s relative strength was prominent as foreign buying was concentrated in large semiconductor stocks and some other large-cap stocks.
The market’s performance on this day was supported by Samsung Electronics’ surprise earnings. Before the market opened, Samsung Electronics announced its preliminary first-quarter earnings for this year, with 133 trillion won in revenue and 57.2 trillion won in operating profit. These figures represent a 68.06% and 755.01% increase, respectively, from the same period last year, with both revenue and operating profit reaching all-time highs. The improvement is attributed to increased memory demand and rising prices driven by the spread of AI.
Samsung Electronics started strong but its gains narrowed somewhat, closing at 196,500 won, up 1.76%. SK hynix also rose 3.39%, boosting overall investor sentiment in the semiconductor sector. Hyundai Motor gained 0.85%, and Hanwha Aerospace surged 6.00%, showing a particularly strong performance among large-cap stocks. Samsung Biologics (1.99%), SK Square (2.46%), and Samsung C&T (1.67%) also finished higher.
The KOSDAQ could not avoid a decline despite net buying from foreign investors. The KOSDAQ index closed at 1036.73, down 10.64 points (1.02%) from the previous trading day. Foreign investors were also net buyers in the KOSDAQ market, purchasing 179.4 billion won, but their efforts were not enough to prevent the index’s fall as retail and institutional investors sold in tandem.
The performance of large-cap stocks on the KOSDAQ was mixed. Ecopro BM (0.80%), Ecopro (1.26%), Rainbow Robotics (0.55%), Lino Industrial (3.98%), HLB (2.15%), and Peptron (2.21%) rose. On the other hand, Alteogen fell 2.21%, and SamchunDang Pharm. plunged by more than 16%.
Meanwhile, according to the Seoul Foreign Exchange Market, the dollar-won exchange rate finished the week’s trading at 1504.2 won, down 2.1 won, at 3:30 p.m. on this day.
The dollar-won rate started the day at 1508.70 won, up 2.40 won from the previous session’s close, and touched as high as 1512.60 won amid uncertainty over a U.S.-Iran ceasefire agreement, before giving up its gains in the afternoon.
President Trump changed the previously warned attack time from the 6th to the 7th, but market tensions rose as Iran rejected the proposed ceasefire, stating it would only accept a permanent end to the war. The U.S. Wall Street Journal (WSJ) also cited a senior official, forecasting that the possibility of a deal between the U.S. and Iran was disappearing and that a final order for an airstrike would be issued on the evening of the 7th.
The dollar index also rose to the 100.15 level on news that Iran’s Revolutionary Guard Corps had halted the passage of two Qatari liquefied natural gas (LNG) vessels heading for the Strait of Hormuz.
However, as uncertainty continued ahead of the deadline mentioned by President Trump, the market shifted to a wait-and-see mood. Additionally, the fact that foreign investors were net buyers in the domestic stock market appears to have had a positive influence.
Yoon Young-sil
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