KOSPI Recovers Above 8900 as Semiconductor Stocks Soar

South Korea's benchmark KOSPI index closed above the 8900 level on the 25th. The index finished the day at 8930.30, a gain of 459.28 points, or 5.42%, from the previous session. After opening 2.74% higher, the index surged rapidly in early trading, retaking the 8900 mark and even surpassing 9000 in the afternoon, significantly offsetting the previous day's 9.99% plunge with two consecutive days of gains.

News of positive earnings from the largest US memory chipmaker sent shares of domestic semiconductor companies, including SK Hynix, soaring, raising investor expectations. On the KOSPI, SK Hynix closed up 13.06% at 2,917,000 won, hitting an intraday high of 2,987,000 won, a new all-time record, up 15.78% during trading. Samsung Electronics finished up 5.29% at 358,500 won. The synchronized rally of SK Hynix and Samsung Electronics coincided with the strong earnings report from US rival Micron Technology. Micron announced that its revenue for the third quarter of fiscal year 2026 (March-May) reached $41.456 billion (approximately 64 trillion won), exceeding market expectations. Micron, which had fallen 0.3% during regular trading hours, surged over 15% in after-hours trading, driving a global recovery in investor sentiment.

News that SK Hynix plans to list its American Depositary Receipts (ADRs) on Nasdaq on July 10th further stimulated investor sentiment in the domestic stock market. Samsung Electronics' announcement the previous day of a 90 trillion won treasury stock buyback plan also contributed to the upward trend. The positive sentiment for semiconductors, driven by Micron's earnings, was interpreted as alleviating concerns about slowing demand and declining profitability. The dual surge in South Korea's top two semiconductor players led the index's rise, and SK Hynix's confirmed ADR issuance schedule strengthened investor confidence.

Institutions were net buyers on the KOSPI, purchasing 4.1274 trillion won worth of stocks, supporting the index's rise. Retail investors and foreign investors were net sellers, offloading 3.2625 trillion won and 850.6 billion won, respectively. In addition to SK Hynix and Samsung Electronics, most other large-cap stocks saw gains, including SK Square (up 5.56%), Samsung Electro-Mechanics (up 1.68%), Samsung Life Insurance (up 3.23%), and Samsung C&T (up 7.79%). On the KOSPI, 291 stocks advanced, 589 declined, and 36 remained unchanged.

In contrast, the KOSDAQ index closed down 20.57 points, or 2.36%, at 887.81. Among top-cap stocks, Alteogen (up 0.94%), Wonik IPS (up 2.72%), and LEENO Industrial (up 4.11%) gained, but most stocks, including EcoPro BM (down 5.57%), EcoPro (down 5.29%), and Jusung Engineering (down 8.50%), experienced declines, showing a sluggish performance.

Analysts suggest that the National Pension Service may sell domestic stocks for rebalancing if the KOSPI surpasses the 9000 mark. The NPS manages its portfolio based on asset allocation plans, and if domestic stock holdings significantly exceed the target ratio due to KOSPI's rise, they may realize profits. Some analyses indicate that as the stock market rally continues and the need for sales increases, the NPS might slow its rebalancing pace and consider further increasing its domestic stock allocation by year-end. Earlier this year, the KOSPI's strong performance prompted the NPS to revise its domestic stock target allocation from 14.9% to 20.8% in January, and to adopt a flexible management plan that expanded permissible asset allocation ranges.