Will the KOSPI set an intraday record high… “Semiconductors are the top pick” [Market Preview for Today]

On the 12th, Korea’s stock market will be watching whether the KOSPI can extend its rally that has lasted three consecutive sessions. With a tailwind for semiconductors coming out of the U.S., some see the KOSPI breaking its all-time intraday high if gains are led by heavyweight chip names.

KOSPI up for three straight sessions… one more today?

In the previous session, the KOSPI closed at 5,354.49, up 52.80 points (1.00%), marking its third consecutive day of gains. It briefly rose as high as 5,374.23 intraday, fueling expectations of surpassing the all-time intraday high (5,376.92), but ended the day trimming part of its advance.

In the Korea Exchange’s main board (KOSPI), foreigners and institutions were net buyers of 858.6 billion won and 689.5 billion won, respectively, lifting the index. Retail investors, meanwhile, dumped 1.7126 trillion won worth of KOSPI shares.

By sector, automakers (+5.40%) led the market on strength in Hyundai Motor (+5.93%) and Kia (+4.59%). Financial holding companies (+4.39%) also helped push the index higher, supported by gains in KB Financial (+5.79%).

The KOSDAQ ended at 1,114.87, down 0.33 points (0.03%) from the previous day.

Institutions posted net buying of 75.4 billion won, while foreigners were net buyers of just 2.0 billion won. Retail investors turned net sellers of 48.4 billion won, taking profits.

Among top market-cap names, Alteogen (+1.85%), ABL Bio (+0.65%), and LigaChem Biosciences (+0.95%) edged higher. EcoPro (-2.24%) and EcoPro BM (-0.99%) were weaker.

Wall Street ends mixed… muted even after a “surprise jobs report”

Wall Street, often seen as a barometer for Korean equities, ended slightly lower the day before, despite January employment figures coming in far above market expectations.

On the previous day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 50,121.40, down 66.74 points (0.13%) from the prior session. The blue-chip S&P 500 was down 0.00%, while the tech-heavy Nasdaq Composite finished 0.16% lower.

The move reflected lingering doubts about the strength of the jobs data, combined with valuation headwinds at elevated index levels. The U.S. Department of Labor said nonfarm payrolls rose by 130,000 in January from the prior month—nearly double the market consensus.

However, markets appeared more focused on the repeated trend of downward revisions to nonfarm payrolls, as well as the presence of multiple indicators pointing to a cooling labor market.

Im Jeong-eun, a researcher at KB Securities, said, “Investors are keeping (the upside potential) in check given the repeated downward revisions to the data and the fact that other indicators suggest the labor market is weakening.”

The Philadelphia Semiconductor Index, made up of AI infrastructure and semiconductor-related stocks, climbed more than 2%. The SOX has rebounded nearly 10% over the past four sessions.

TSMC, Lam Research, Applied Materials, KLA, and Intel rose around 3%.

Micron Technology surged 9.94% after saying it is “delivering HBM4 to Nvidia without issues.”

Most mega-cap tech stocks fell amid profitability debates, including Microsoft (-2.15%), Alphabet (-2.39%), and Amazon (-1.39%).

“Micron tailwind… semiconductors are set to rise”

Experts expect Korea’s market to post gains led by heavyweight semiconductor names.

Han Ji-young, a researcher at Kiwoom Securities, said, “News of Micron’s share-price spike could act as a company-specific positive for Samsung Electronics and SK hynix,” adding, “A handful of names such as semiconductors are likely to drive intraday gains in the KOSPI.”

There is also analysis that ‘March expectations’ could come into play toward month-end, with companies’ annual shareholders’ meetings concentrated next month. Brokerages believe firms could become more proactive on shareholder returns as part of the revised Commercial Act amended last year is reflected in this year’s shareholder meetings.

Byun Jun-ho, a researcher at IBK Investment & Securities, said, “The KOSPI has been highly volatile as the market works off short-term overheating after the sharp year-to-date rally, but once the consolidation phase runs its course, it is likely to resume an uptrend reflecting ‘March expectations.’”

He added, “During shareholder-meeting season, an additional rally could be driven by companies focused on higher dividends and expanded share buybacks and cancellations,” noting, “Since most annual shareholder meetings are typically held in mid-to-late March, the market is likely to price this issue in positively throughout March.”

He said, “Even during February’s consolidation phase driven by March expectations, the pullback is unlikely to be large,” adding, “A buy-the-dip strategy remains valid.”

Reporter Seon Han-gyeol