Samsung Electronics Rises 3.3%, SK Hynix Jumps 8.1% as Kospi Tops 6,830 for Record

The Kospi rose above 6,830 in intraday trading on May 4, setting a fresh record high.

At about 10:50 a.m., the benchmark index was up 3.52% from the previous session at 6,831.16. After opening 2.78% higher, the Kospi climbed past 6,800 on buying by foreign and institutional investors. Foreign investors were net buyers of 2.0512 trillion won, while institutions bought a net 1.1738 trillion won. Individuals were net sellers of 3.1607 trillion won.

Samsung Electronics gained 3.29% and SK Hynix jumped 8.09%. SK Square surged 13.44% on expectations that the value of its SK Hynix stake would be reflected and that shareholder returns would improve. Other large-cap stocks also advanced, including Hanwha Aerospace, up 2.82%, Samsung Electro-Mechanics, up 6.01%, Kia, up 2.44%, Samsung Life Insurance, up 2.81%, and HD Hyundai Electric, up 4.47%.

The Kosdaq also rose, gaining 1.93% to 1,215.39 at the same time. Foreign and institutional investors were net buyers of 569.7 billion won and 12.7 billion won, respectively. Individuals were net sellers of 579.7 billion won.

The domestic stock market is reacting more strongly to strong semiconductor export data than to geopolitical tensions. Semiconductor exports reached $31.9 billion in April, up 173.5% from a year earlier, according to the Ministry of Trade, Industry and Energy. That was the second-highest monthly export total on record, behind March's $32.8 billion. Buying has been flowing into chip stocks ahead of earnings reports from US technology companies including Palantir Technologies and Advanced Micro Devices.

Lee Kyung-min, an analyst at Daishin Securities, said the Kospi is narrowing the gap between earnings and valuations, moving past volatility linked to geopolitical risks on the back of solid Korean exports and semiconductor momentum. As long as corporate earnings growth does not slow, investors should maintain or increase exposure to market leaders and also pay attention to laggards as the market prepares for the Kospi 7,000 era, he added.

Cho Ara, Hankyung.com reporter rrang123@hankyung.com