KOSPI Hits All-Time High, Buoyed by APEC Optimism
The KOSPI achieved a historic milestone, soaring to an all-time high, driven by the opening of the Asia-Pacific Economic Cooperation (APEC) summit, SK Hynix's robust Q3 earnings, and positive sentiment surrounding Nvidia's AI semiconductor market.
According to the Korea Exchange on the 29th, the KOSPI closed at 4081.15, a jump of 70.74 points (1.76%) compared to the previous trading day. This marks a record high closing price. The KOSPI opened strong at 4061.54 and reached an intraday peak of 4084.09, demonstrating its upward momentum. Institutional investors played a key role in driving the rally, net buying ₩641.1 billion worth of shares. Conversely, individual and foreign investors engaged in profit-taking, net selling ₩361.8 billion and ₩222.4 billion respectively.
By sector, machinery & equipment, distribution, IT services, construction, and electric gas exhibited significant strength. In particular, the machinery & equipment sector recorded the highest gain, rising by 6.42%, followed by the distribution sector with a 5.05% increase. IT services and construction sectors rose by 3.82% and 3.70%, respectively, supporting the market's overall upward trend. The electric gas sector also showed a stable rise, increasing by 3.09%. On the other hand, some sectors, including textiles & apparel, pharmaceuticals, non-metallic minerals, and entertainment & culture, experienced declines. The textiles & apparel sector saw the largest drop, falling by 2%, while the pharmaceutical and non-metallic minerals sectors fell by 1.3% and 1.1%, respectively. The entertainment & culture sector declined slightly by 0.4%.
This KOSPI surge is attributed to a combination of factors, including the proactive economic policies of the Trump administration in the US and optimism surrounding the APEC summit. The strong buying activity from institutional investors reflects a positive outlook on the market. Furthermore, SK Hynix's strong Q3 earnings and the positive momentum in the AI semiconductor market, driven by Nvidia, have injected vitality into the domestic stock market.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The differentiated growth momentum of the AI industry has been highlighted following the Nvidia GTC event and SK Hynix's earnings announcement. The concentration of investment in the semiconductor and nuclear power industries is strengthening again." This analysis accurately reflects recent market trends and serves as a crucial reference point for investors to formulate investment strategies. The trend of capital flowing into the semiconductor and nuclear power sectors is likely to continue for the foreseeable future.
Among the top market capitalization stocks, SK Hynix reached an intraday high of ₩559,000, breaking its all-time record. It closed at ₩558,000 (up 7.1%), surpassing a market capitalization of ₩400 trillion. Samsung Electronics also regained the '100,000 won mark' in a single day, meeting investors' expectations. Samsung Electronics closed at ₩100,500, up 1.01%.
News of US investment in nuclear power led to a surge in Doosan Enerbility and Samsung C&T. Doosan Enerbility rose by 11.57% to ₩96,400, while Samsung C&T rose by 11.59% to ₩231,000, providing significant returns for investors.
In contrast, Celltrion, Samsung Biologics, and Hanwha Aerospace closed slightly lower, failing to participate in the market's overall rally. Celltrion fell by 1.51%, Samsung Biologics by 0.89%, and Hanwha Aerospace by 0.3%.
Meanwhile, the KOSDAQ closed at 901.59, down 1.71 points (0.19%) from the previous day. Foreign and individual investors showed net buying in the KOSDAQ market, but the decline was driven by net selling from institutional investors. Foreign investors net bought ₩37 billion, individual investors net bought ₩64.5 billion, and institutional investors net sold ₩62.5 billion.
Among the top market capitalization stocks, Alteogen, EcoProBM, and EcoPro fell, while PepTron and LINO Corporation rose. Alteogen fell by 2%, EcoProBM by 1.38%, and EcoPro by 4.22%, while PepTron rose by 1.92% and LINO Corporation by 1.92%. EcoPro's decline was particularly notable.
The won-dollar exchange rate recorded ₩1431.7 (as of 3:30 PM), down ₩6 from the previous trading day. This is attributed to a slight easing of the recent dollar strength.
Major Sector Trends Analysis
A detailed examination of the major sector trends that led the KOSPI's rise reveals the following: The machinery & equipment sector recorded a high increase, reflecting positive prospects for global economic recovery along with expectations for infrastructure investment expansion related to the APEC summit. In particular, construction machinery and industrial machinery-related stocks showed strength.
The distribution sector showed an upward trend due to expectations for a recovery in consumer sentiment and forecasts for an increase in gift demand ahead of the Chuseok holiday. In particular, department store and large supermarket-related stocks showed strength.
The IT services sector recorded an upward trend, reflecting expectations for increased cloud service demand along with increased digital transformation investments by companies. In particular, system integration (SI) companies and cloud service providers showed strength.
The construction sector showed an upward trend due to expectations for resolving housing supply shortages along with the government's SOC investment expansion policy. In particular, large construction companies and housing construction companies showed strength.
The electric gas sector recorded an upward trend, reflecting expectations for the government's energy transition policy along with stable profitability. In particular, public enterprise-related stocks such as Korea Electric Power Corporation and Korea District Heating Corporation showed strength.
On the other hand, the textile & apparel sector could not avoid a downward trend due to concerns about a slowdown in the global economy and a contraction in consumer sentiment. In particular, apparel OEM companies and textile material companies showed weakness.
The pharmaceutical sector showed a downward trend due to concerns about intensifying competition along with new drug development failures. In particular, biosimilar companies and generic drug companies showed weakness.
The non-metallic minerals sector recorded a downward trend due to the burden of rising raw material prices along with a slowdown in the construction industry. In particular, cement companies and glass manufacturers showed weakness.
The entertainment & culture sector fell slightly due to concerns about intensified regulations in the Chinese market along with poor content box office performance. In particular, film distributors and drama production companies showed weakness.
Future Outlook and Investment Strategy
Analysts generally believe that the KOSPI has ample room for further upside, amid continued expectations for the APEC summit and global economic recovery. However, policy changes by the US Trump administration and the possibility of increased global economic uncertainty are cited as factors that require caution in investment.
Therefore, investors should establish investment strategies from a long-term perspective without being overly concerned about short-term volatility. In particular, it is advantageous to construct a portfolio centered on sectors that are expected to benefit from government policies and stocks that are expected to improve their performance. Furthermore, dividend stock investments, which can secure stable returns in an era of high interest rates, are also worth considering.
However, investment always carries risk, so it is important to gather sufficient information and seek expert advice before making investment decisions.
A thorough analysis of the economic policy direction of the Lee Jae-myung government in Korea and policy changes by the US Trump administration is necessary, and continuous interest in changes in the global economic situation is required. In particular, volatility in the market may increase depending on the key agendas and outcomes to be discussed at the APEC summit, so investors should pay attention. In addition, continuous monitoring of changes in macroeconomic indicators such as interest rate hikes and inflation is necessary, and adjustments to investment strategies should be considered accordingly.
Investors should carefully make investment decisions by comprehensively considering these various factors.
