Foreign, institutional buying of chip stocks lifts KOSPI near 7,000
Summary
Foreign and institutional investors lifted the KOSPI near 7,000 Monday as chip stocks rallied on renewed optimism over AI-driven memory demand. The benchmark closed at 6,995.39, up 4.61 percent, while SK hynix and Samsung Electronics advanced 8.26 percent and 5.68 percent, respectively. Analysts said brokerages are calling for revaluation of the two chipmakers amid tight memory supply expectations. The won strengthened to 1,340.5 per dollar, and the Kosdaq rose 1.07 percent to 822.19.
Key Facts
- Foreign investors net purchased 2.59 trillion won worth of shares, and institutional investors net bought 2.63 trillion won, while retail investors net sold 6.82 trillion won.
- The KOSPI opened 3.34 percent higher and closed at 6,995.39, up 4.61 percent from the previous session.
- SK hynix closed at 1,783,000 won after rising 8.26 percent, and Samsung Electronics finished at 270,000 won after gaining 5.68 percent.
- KB Securities said memory inventories at Samsung Electronics and SK hynix fell below 10 days in the third quarter, and Nomura Securities said both stocks were deeply undervalued.
- The won strengthened 9.9 won to close at 1,340.5 per dollar and touched 1,338.5 around 9:30 a.m., its strongest level in 23 months.
KOSPI and Kosdaq are displayed in the dealing room of Hana Bank in Seoul, Monday. The benchmark KOSPI closed at 6995.39, up 4.61 percent from the previous session, while the secondary Kosdaq closed at 822.19, up 1.07 percent. Yonhap
Foreign and institutional investors stepped up purchases of chip stocks Monday, helping lift the KOSPI near 7,000 as renewed optimism over artificial intelligence (AI)-driven memory demand fueled a semiconductor rally.
The benchmark KOSPI closed at 6995.39, up 4.61 percent from the previous session. The index opened 3.34 percent higher and extended its gains.
Foreign and institutional investors net purchased 2.59 trillion won ($1.93 billion) and 2.63 trillion won worth of shares, respectively, while retail investors net sold 6.82 trillion won.
SK hynix rose 8.26 percent to close at 1,783,000 won, while Samsung Electronics gained 5.68 percent to finish at 270,000 won.
OpenAI's new GPT-6 Astra model, which has drawn positive reviews for its performance, fueled expectations for increased token usage and further expansion of AI infrastructure. Nvidia's announcement that it would acquire Hugging Face also reinforced expectations for stronger memory demand.
Brokerages are increasingly calling for a revaluation of Samsung Electronics and SK hynix after their shares fell about 38 percent from their three-month peaks. Their valuations have fallen to around three times projected 2027 earnings.
KB Securities said Monday that the memory market next year is likely to face "the tightest supply conditions in history." The brokerage estimated that memory inventories at the two chipmakers fell below 10 days in the third quarter.
Nomura Securities also said both stocks were deeply undervalued, estimating that global production capacity would need to double within four years and triple within six years to keep pace with demand.
The Kosdaq also extended its winning streak, rising 1.07 percent to close at 822.19.
Despite renewed investor interest, concerns over U.S. interest rates remain, analysts said.
Expectations for a rate hike this month resurfaced after stronger-than-expected August payrolls. Investors are now awaiting the August consumer price index, due Sept. 11.
The yen has also strengthened sharply against the dollar, raising concerns over an unwinding of yen carry trades. The currency has appreciated from around 160 yen per dollar to the 155-yen range.
The won strengthened 9.9 won to close at 1,340.5 per dollar. It touched 1,338.5 around 9:30 a.m., its strongest level in 23 months.
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