Kospi Tops 8,400 in Early Trade for Record High as Samsung Electronics, SK Hynix Surge
Summary
- The Kospi surged enough to break above the 8,400 level in early trading and hit a record high, triggering a buy-side sidecar.
- Samsung Electronics, SK Hynix and related names including SK Square, Samsung Life Insurance and Samsung C&T advanced on demand tied to single-stock leveraged ETFs based on the two chipmakers.
- Unlike the Kospi, the Kosdaq fell and names such as Hyundai Motor and LG Energy Solution were weaker, while the won-dollar exchange rate edged lower and the S&P 500 and Nasdaq Composite closed at record highs.
Forecast Trend Report by Period
The Kospi rose above 8,400 in early trading on May 27, hitting a record intraday high as Samsung Electronics and SK Hynix surged after Micron Technology's overnight rally in New York. Foreign investors led buying from the open.
As of 9:10 a.m., the Kospi was up 332.14 points, or 4.13%, at 8,379.65. The index opened at 8,242.12 and quickly climbed to as high as 8,450.26.
At about 9:06 a.m., a buy-side sidecar was triggered, temporarily suspending the validity of program buy orders. The move came after Kospi 200 futures rose more than 5% for more than one minute. The Kospi 200 futures index stood at 1,333.5 when the sidecar was activated.
On the benchmark market, institutions were net buyers of 438.4 billion won worth of shares, while foreign investors bought a net 221.6 billion won. Foreigners were also net buyers of 63.2 billion won in Kospi 200 futures. Individuals, by contrast, were net sellers of 478.6 billion won in stocks.
Moves among the biggest stocks by market capitalization were mixed, but the advancing names posted sharp gains.
Samsung Electronics rose 6.86% and SK Hynix jumped 10.28%. SK Square, whose stakes in the two chipmakers have come into focus, gained 9.23%. Samsung Life Insurance added 3.59%, while Samsung C&T rose 4.14%.
The rally appeared to reflect Micron's overnight jump in New York. The memory-chip maker closed up 19.29% at $895.88, lifting its market capitalization above $1 trillion. The stock surged after UBS raised its price target threefold, boosting investor sentiment. UBS said Micron had shifted from a typical cyclical company to a structurally high-profit business.
Trading also began on May 27 in single-stock leveraged exchange-traded funds tied to Samsung Electronics and SK Hynix, which appeared to add to demand for the shares.
Samsung Electro-Mechanics also rose 7.95%.
As money crowded into the Samsung Electronics-SK Hynix theme, Hyundai Motor fell 2.32%, LG Energy Solution lost 1.13%, and HD Hyundai Heavy Industries dropped 1.48%.
The concentration of flows also weighed on the Kosdaq. The index was down 23.19 points, or 1.98%, at 1,149.33.
On the Kosdaq market, individuals bought a net 227.4 billion won of shares, while foreigners and institutions sold a net 124.7 billion won and 108.9 billion won, respectively.
Most large-cap Kosdaq names were lower. Samchundang Pharm fell 4.00%, while Leeno Industrial dropped 4.24%.
Fadu, by contrast, surged 6.85%.
In Seoul's foreign-exchange market, the won traded at 1,504.8 per dollar, down 2.4 won, or 0.16%, from the previous session.
Overnight in New York, the Nasdaq Composite and the S&P 500 closed at record highs. On May 26, the S&P 500 rose 45.65 points, or 0.61%, to 7,519.12, while the Nasdaq gained 312.21 points, or 1.19%, to 26,656.18. Both indexes finished at record closing highs.
Han Gyeong-u, Hankyung.com reporter case@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.
