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KOSPI reclaims 9,000 intraday as chip stocks surge on Micron earnings
The closing prices of KOSPI, SK hynix and Samsung Electronics are displayed on a screen in Hana Bank's dealing room in Seoul, Thursday. The benchmark index closed at 8,930.30, up 459.28 points, or 5.42 percent, from the previous session, while SK hynix and Samsung Electronics gained 13.06 percent and 5.28 percent, respectively. Yonhap
By Jun Ji-hye
KOSPI jumped more than 6 percent intraday Thursday to reclaim the 9,000 level, led by a surge in semiconductor stocks after U.S. memory chipmaker Micron Technology reported stronger-than-expected earnings.
The benchmark index opened at 8,703.42, up 232.40 points, or 2.74 percent, from the previous day's close, and extended its gains to 9,000.88 by 2:24 p.m., rising 529.86 points, or 6.25 percent, from the previous session to reclaim the 9,000 mark.
The index later surrendered part of its gains and closed at 8,930.30, up 459.28 points, or 5.42 percent, from the previous session.
Reflecting strong buying momentum, a buy-side sidecar was triggered at 9:07 a.m., temporarily suspending program buy orders.
The benchmark index drew support from Micron's better-than-expected quarterly results and upbeat guidance. Investor optimism toward the semiconductor sector further intensified ahead of second-quarter earnings announcements from Samsung Electronics and SK hynix.
SK hynix's planned Nasdaq listing through American depositary receipts, tentatively scheduled for July 10, provided an additional tailwind.
During Thursday's session, Samsung Electronics rose 5.28 percent and SK hynix gained 13.06 percent by the close.
"The earnings surprise from Micron is a supportive factor for investor sentiment, particularly after the severe selloff experienced by major markets, including Korea's, earlier this week," Han Ji-young, an analyst at Kiwoom Securities, said.
Kim Jae-seung, an analyst at Hyundai Motor Securities, also said Micron's disclosure of long-term supply agreements strengthened confidence in the outlook for the memory chip industry.
"The announcement suggests that tight memory supply conditions and healthy profitability are likely to persist, raising expectations for the upcoming earnings results of Samsung Electronics and SK hynix," he said.
Meanwhile, the secondary Kosdaq opened at 923.66, up 14.35 points, or 1.58 percent, from the previous session, but later reversed course to close at 887.81, down 21.50 points, or 2.36 percent.
In Seoul's foreign exchange market, the Korean won opened at 1,543.0 per dollar, weakening 1.2 won from the previous session's close, before trimming some losses to end the onshore session at 1,542.7 per dollar, down 0.7 won.