The KOSPI rose on the back of reduced uncertainty following the September Federal Open Market Committee (FOMC) meeting and a decline in international oil prices. Jensen Huang, CEO of NVIDIA, also boosted sentiment for semiconductor stocks and KOSPI investment with remarks about increased semiconductor sales volumes.
On Friday, the KOSPI closed up 178.82 points (2.66%) from the previous day at 6,894.23.
Although the Federal Reserve raised its base rate at the September FOMC meeting, domestic and foreign stock markets are finding stability. This is because uncertainty surrounding Federal Reserve policy has eased and Saudi Arabia proposed a ceasefire in Oman, causing international oil prices to fall.
Additionally, sentiment for semiconductor investment improved after CEO Huang met with reporters ahead of his attendance at an AI (artificial intelligence) summit held in Scotland on Thursday (local time), hosted by King Charles III of the United Kingdom. He said, "We expect NVIDIA's chip sales next year to be double this year's volume."
Major U.S. stock indices also rose across the board overnight. On the 17th (local time), the S&P 500 index closed up 85.19 points (1.14%) at 7,637.73 on the New York Stock Exchange, while the NASDAQ Composite Index rose 439.87 points (1.69%) to close at 26,418.30. The Dow Jones Industrial Average closed up 316.28 points (0.61%) at 51,778.18.
Lee Kyung-min, a FICC research manager at Daishin Securities, said, "The domestic stock market showed strength as macroeconomic uncertainty that had capped the index ceiling eased." He added, "Foreign investors, who had been net sellers for seven consecutive trading days, switched to net buying, while institutional investors and financial investors expanded their net purchases, contributing to the index's upward trend."
He further explained, "Declines in international oil prices and U.S. Treasury yields alleviated macroeconomic burdens, highlighting momentum in the AI and semiconductor value chain."
In the KOSPI market, foreign investors and institutional investors purchased a net 438.9 billion won and 1.5055 trillion won, respectively. Retail investors sold a net 3.5929 trillion won.
Among KOSPI sectors, electrical & electronics and manufacturing rose 4.46% and 3.42%, respectively. Non-metallics rose 1.16%, while medical precision/instruments, construction, and IT (information technology) closed with a slight gain.
Conversely, electricity & gas and distribution fell by more than 1%, while insurance, general services, and food & tobacco closed with a slight decline.
The top five stocks by market capitalization in the KOSPI all rose sharply. Benefiting from improved semiconductor investment sentiment, Samsung Electronics and SK Hynix surged 3.37% and 6.42%, respectively. SK Square closed strongly up 7.04%, and Samsung Electric rose 4.36%.
Financial stocks closed weakly. Hana Financial Group fell 3.2%, while KB Financial Group and Shinhan Financial Group dropped by more than 2%.
The KOSDAQ recorded a gain of 4.94 points (0.6%) from the previous day at 827.12.
In the KOSDAQ market, retail investors and institutional investors purchased a net 12.2 billion won and 2.18 billion won, respectively. Foreign investors sold a net 42.9 billion won.
Among KOSDAQ sectors, construction and electrical & electronics rose by over 2%. Transportation equipment/parts, machinery & equipment, and communications rose by more than 1%. Conversely, pharmaceuticals fell 2.05%, while entertainment/culture, paper/wood, financial services, and general services closed with a slight decline.
Among the top KOSDAQ stocks by market capitalization, Peptron surged 5.48%. Other semiconductor materials, components and equipment stocks also showed an upward trend. Rino Industrial rose 4.82%, while Wonik IPS and Eugene Tech rose 2.97% and 1.17%, respectively. Biotech stocks showed weakness. HLB fell 7.34%, while ABLE Bio, Samtong Pharmaceutical, and Ligand Biopharma dropped 3.61%, 2.39%, and 1.2%, respectively.
On this day, the won-dollar exchange rate closed weekly trading up 13.6 won from the previous day's closing price at 1,382.2 won.
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