Forecast Trend Report by Period
Kospi rally powers on as AI investment theme lifts earnings outlook
SK Hynix hits record high, tops 1 quadrillion won in market value
South Korea’s Kospi rose above 6,900 and closed at a record high despite Middle East tensions, as expectations for earnings upgrades at domestic companies boosted sentiment. Semiconductor shares led the advance, with SK Hynix becoming only the second company in Korean stock market history, after Samsung Electronics, to surpass 1 quadrillion won in market capitalization.
The Kospi closed at 6,936.99 on May 4, up 5.12% from the previous session. That topped the previous record closing high of 6,690.9 set on April 29. The benchmark is now roughly 63 points short of 7,000.
Investor sentiment was also buoyed by record highs on Wall Street last week. The S&P 500 posted all-time closing highs for a second straight session, while the Nasdaq Composite finished above 25,000 for the first time.
The rally also drew support from falling oil prices after US President Donald Trump said he would help vessels from third countries trapped in the Strait of Hormuz leave safely.
The market’s resilience remains the biggest driver of gains. Yang Il-woo, an analyst at Samsung Securities, said Kospi earnings momentum should continue because global liquidity is still expanding even during the war involving Iran. A valuation rerating for SK Hynix through measures such as an ADR listing could also spread to financial and auto stocks, which have traded at lower price-to-book ratios, he added.
Foreign and institutional investors drove the rise. Foreign investors were net buyers of 3.9633 trillion won on the Kospi on May 4, while institutions bought a net 2.5227 trillion won. Retail investors were net sellers of 6.3003 trillion won.
Chipmakers powered the index higher. SK Hynix jumped 12.52% to close at 1.447 million won, lifting its market capitalization past 1 quadrillion won, to about 1.031 quadrillion won. It is the second company ever to cross that threshold in Korea after Samsung Electronics. Samsung Electronics rose 5.44% to finish at 232,500 won.
Kim Young-geon, an analyst at Mirae Asset Securities, said demand from US big tech companies for high-bandwidth memory remains strong, and trends in long-term supply contracts across the industry are encouraging. He set a target price of 2 million won for SK Hynix.
Other semiconductor-related shares also surged, including Samsung Electronics preferred shares, up 7.14%, SK Square, which gained 17.84%, and Samsung Electro-Mechanics, up 10.34%.
Cable and brokerage stocks added to the momentum. Among cable makers, Iljin Holdings rose 29.94%, Sanil Electric climbed 25.19%, Gaon Cable added 19.46%, Iljin Electric gained 17.71% and Daewon Cable advanced 15.28%. Among brokerages, Samsung Securities jumped 27.81% and Yuanta Securities Korea rose 14.86%. The moves reflected expectations for gains from investment tied to the artificial intelligence industry and optimism over a buoyant stock market.
The Kosdaq also moved closer to a record high. The index closed at 1,213.74 on May 4, up 1.79% from the previous session, nearing its all-time high of 1,226.18.
The won strengthened sharply against the dollar. In Seoul trading, the currency closed at 1,462.8 per dollar, up 20.5 won from the previous session.
Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
