KOSPI Surpasses 7500 for First Time, Extends Winning Streak to Four Trading Days

The KOSPI, South Korea's benchmark stock market index, has surpassed the 7500 mark for the first time in its history. On April 8th, the KOSPI closed at 7498.00, a slight increase of 7.95 points (0.11%) from the previous trading day, marking the fourth consecutive day of gains. Over the course of this week, the KOSPI saw a total rise of 13.90%.

This week's market strength was fueled by the spread of a global semiconductor rally. With buying concentrated in large-cap semiconductor stocks such as Samsung Electronics and SK Hynix, the KOSPI broke through the 7500 mark during trading hours, and its market capitalization exceeded 6000 trillion won. Strong earnings from US tech giants and expectations for increased investment in artificial intelligence (AI) stimulated investment sentiment in Korea's semiconductor sector. The earnings reports from US hyperscalers reaffirmed the growing AI demand. Amazon, Microsoft, and Google reported earnings exceeding market expectations, showing increased cloud revenue related to AI.

This trend reinforced expectations for increased global semiconductor investment, leading to strong performance in AI infrastructure-related sectors such as semiconductors and power equipment in the domestic market. On April 8th, the KOSPI index closed at 7498.00, up 7.95 points (0.11%) from the previous trading day, continuing its four-day winning streak. For the week (April 4-8), the KOSPI rose 13.90%. Foreign investors were net buyers, purchasing over 4 trillion won in the KOSPI market this week.

Amid growing concerns over rapid gains in a short period, the market faces potential sector rotation and increased volatility next week, with key events such as the US Consumer Price Index (CPI) and the US-China summit on the horizon. Shinhan Investment & Securities noted that while semiconductors remain a core focus, earnings forecast revisions based on first-quarter results have followed historical patterns, and SK Hynix, in particular, has reached its fair valuation. Therefore, a speed adjustment may occur between late May and June.

Experts analyze that the current upward trend is based on earnings upgrades. They suggest a strategy of maintaining core positions in leading sectors like semiconductors and power equipment, while expanding portfolios to include blue-chip stocks within sectors that are seeing substantial earnings improvements. Sectors with supported earnings and momentum, such as telecommunications equipment, shipbuilding, secondary batteries, and renewable energy, are being cited as alternatives.