With growing expectations of a U.S. interest rate freeze and strong semiconductor exports from South Korea, major semiconductor stocks closed higher on the 4th. Financial stocks, which typically serve as defensive plays during market downturns, also weakened due to profit-taking sales.
On this day, KOSPI finished regular trading at 6,687.21, up 107.73 points (1.64%) from the previous session. After opening at 6,654.36, KOSPI widened its gains and rose more than 2% during the session.
Net purchases by institutional investors and foreign investors drove the rise in KOSPI. As of 3:42 p.m., institutional investors bought net 1.6691 trillion won, while foreign investors purchased net 503.4 billion won. In contrast, retail investors sold net 3.7225 trillion won.
KOSPI showed strong performance centered on major semiconductor stocks. Samsung Electronics closed at 255,000 won, up 5,500 won (2.20%) from the previous session. SK Hynix closed at 1.647 million won, up 51,000 won (3.20%). SK Square rose over 6%, and Samsung Electro-Mechanics gained over 3%, both showing strong momentum.
On the other hand, major financial stocks that had served as defensive plays during downturns also weakened. KB Financial Group closed at 172,000 won, down 5,900 won (3.32%), and Shinhan Financial Group also fell over 3%.
Lee Kyung-min, a researcher at Daishin Securities, stated, "KOSPI showed strong performance thanks to coordinated net purchases by foreign investors and institutional investors." He added, "Christopher Waller of the Federal Reserve (Fed) recently noted signs of disinflation in recent price indicators, increasing market expectations for an FOMC interest rate freeze."
The researcher further noted, "With U.S. Treasury yields stabilizing, low-priced buying flowed into undervalued sectors relative to earnings, leading to differentiated market performance. The semiconductor sector showed clear upward momentum as investor sentiment improved, while the financial sector weakened due to profit-taking sales."
In KOSPI sectors, medical and precision equipment rose over 3%, while IT services, electrical and electronics, machinery and equipment, and communications gained over 2%. Manufacturing, securities, and entertainment and culture rose over 1%. Construction, chemicals, financials, and real estate showed strong flat performance. Pharmaceuticals, metals, retail, and food and tobacco displayed weak flat trends. Electrical and gas fell over 1%, while insurance dropped over 3%.
As military tensions between the U.S. and Iran reignited, oil prices rose, boosting the refining sector. SK Innovation, S-Oil, and GS Energy all closed higher.
KOSDAQ widened its gains in the afternoon and settled above the 810th line. It finished at 813.50, up 23.29 points (2.95%) from the previous session. Starting at 802.32, KOSDAQ expanded its intraday gains as foreign investors and institutional investors increased their buying activity.
Notably, foreign investor buying was particularly strong in KOSDAQ. Foreigners bought net 262.7 billion won, while institutional investors purchased net 160.2 billion won. Retail investors sold net 412.3 billion won.
Robotics stocks and semiconductor materials, components, and equipment (MCE) stocks showed exceptional strength. RoboTech closed at 304,500 won, up 56,000 won (22.54%) from the previous session, while Rainbow Robotics rose over 5%. Wonik IPS gained over 9%, Juseong Engineering rose over 6%, and IOTech increased over 5%, with semiconductor-related stocks showing coordinated strength.
Kim Seok-hwan, a researcher at Mirae Asset Securities, diagnosed, "Due to the rush in China's humanoid robot development, domestic component companies have seen a sharp increase in sales to China." He added, "Expectations of substitute demand for Chinese-made products in the North American market also contributed to rising robotics stock prices."
Among top market capitalization stocks, ABL Bio rose over 5%, AlteoGen gained over 1%, while EcoPro and Simtek showed strong flat performance.
In KOSDAQ sectors, medical and precision equipment rose over 3%, while IT services, electrical and electronics, machinery and equipment, and communications increased over 2%. Manufacturing, securities, and entertainment and culture rose over 1%. Construction, chemicals, financials, and real estate showed strong flat performance. Pharmaceuticals, metals, and retail displayed weak flat trends, while electrical and gas fell over 1%. Insurance dropped over 3%, showing weakness.
On this day, in the Seoul foreign exchange market, as of 3:30 p.m., the won-dollar exchange rate traded at 1,350.4 won, down 8.9 won from the previous session.
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