KOSPI Surges Past 6400 as Foreign Investors Resume Net Buying

The KOSPI has surpassed the 6400 mark for the first time in history, breaking its previous record high. This comes after the index exceeded its all-time high of 6307, recorded on February 26th, for two consecutive trading days, following a period of heightened tensions in the Middle East. The KOSPI closed at 6417.93.

Foreign investors, who net sold 35.88 trillion won worth of KOSPI stocks in March, have shown signs of returning, resuming net purchases of 5.2 trillion won this month. They have particularly concentrated their investments in major semiconductor stocks like Samsung Electronics (1.4 trillion won) and SK Hynix (2.2 trillion won). Analysis suggests that the large-scale selling by foreigners in March was not due to a deteriorating outlook for semiconductor earnings, but rather for 'profit-taking' from gains made last year. Foreigners' stake in KOSPI's market capitalization remained at 36.65% at the beginning of January and the beginning of this month.

Goldman Sachs raised its 12-month target for the KOSPI from 7000 to 8000, citing upward revisions to earnings driven by AI-related semiconductor demand. JP Morgan has set the highest target for the KOSPI at 8500. They believe that upward revisions to earnings estimates, particularly for tech stocks and memory semiconductors, can offset global stagflationary pressures.

There is a possibility that short-term profit-taking selling may re-emerge after SK Hynix's first-quarter earnings announcement scheduled for the 23rd. An analyst at SK Securities noted that this announcement could act as a trigger for 'sell-on-news' phenomena, regardless of the actual results or guidance direction, both before and after the earnings release.