Strong U.S. AI Earnings and Hopes for Iran Diplomatic Breakthrough Spark Semiconductor-Led Inflows
KOSDAQ Also Rises 1.38%; Large Caps Outperform Mid- and Small-Caps on KOSPI
Both the KOSPI and KOSDAQ rebounded in a single day on Tuesday. Bolstered by strong earnings from U.S. artificial intelligence companies and optimism surrounding U.S.-Iran diplomatic developments, investor sentiment improved significantly. Foreign buying concentrated heavily on large-cap issues, particularly semiconductors, allowing the KOSPI to recover a substantial portion of the previous session's steep losses.
According to the Korea Exchange (KRX), the KOSPI closed up 182.92 points, or 3.29%, at 5,735.66. The tech-heavy KOSDAQ advanced 10.79 points, or 1.38%, to finish at 792.76. The won-dollar exchange rate stood at 1,324.5 won, down 1.5 won from the previous session, according to the KRX market brief.
The KOSPI opened higher, tracking positive earnings from U.S. AI firms and easing geopolitical tensions in the Middle East. As lingering concerns over the sustainability of AI capital expenditures—which had recently weighed on the market—abated somewhat, foreign capital flowed into electrical and electronic shares. After plunging 3.73% the previous day, the KOSPI bounced back by over 3% to reclaim the 5,700 mark.
By sector, medical and precision instruments rose 5.4%, electrical and electronics gained 5.0%, distribution advanced 2.2%, and construction increased 2.1%. Large-cap stocks outperformed with a 3.6% gain, while mid-cap and small-cap issues fell 0.2% and 0.1%, respectively, highlighting a large-cap-centric rally.
In the supply-demand breakdown, foreign investors were net buyers of 664.9 billion won, whereas institutional and retail investors net sold 71.5 billion won and 1.1318 trillion won, respectively. Foreigners net purchased 509.3 billion won in the electrical and electronics sector, alongside 54.7 billion won in transportation equipment and parts, and 39.7 billion won in chemicals.
The KOSDAQ advanced on solid U.S. AI earnings and bargain-hunting following the previous day's rout. Buying from institutional and retail investors centered on the electrical/electronics and machinery/equipment sectors. By sector, general services rose 3.0%, non-metals gained 2.7%, and machinery and equipment climbed 1.9%.
On the KOSDAQ market, foreign investors net sold 171.7 billion won, while institutions and individuals net purchased 104.7 billion won and 51.6 billion won, respectively.
Semiconductor-Led Rebound; Hyungji Elite Extends Rally
Semiconductor shares, which weakened the previous day due to jitters over AI investments, attracted renewed buying interest. Strong earnings from U.S. AI corporations and expectations of robust AI demand improved semiconductor sentiment, pushing the electrical and electronics sector up 5.0%.
Large-cap semiconductor heavyweights, including Samsung Electronics and SK hynix, participated in the rebound, accompanied by inflows into semiconductor equipment suppliers. Of the 664.9 billion won in total net buying by foreigners on the KOSPI, electrical and electronics alone accounted for 509.3 billion won.
Hyungji Elite (093240) closed up 11.23% at 2,140 won, extending its surge following the previous day's daily limit-up. Interest persisted regarding the suspension of delisting procedures due to a market capitalization shortfall and the resumption of trading following a stock consolidation.
Elice Group, which plummeted on its KOSDAQ debut the day before, also staged a rebound.
Divergent Fortunes for Hyungji Group Affiliates; Intraday Spikes Falter
Hyungji Global (308100) surged as high as 497 won intraday, but profit-taking in the afternoon dragged the stock down 6.53% to close at 358 won.
Hyungji I&C (011080) similarly climbed to 1,482 won during the session before finishing 7.02% lower at 1,060 won. Both stocks failed to sustain their intraday surges and turned negative by the close.
Among the Hyungji Group affiliates that spiked together the previous day on news of delayed delisting procedures, only Hyungji Elite managed to sustain a double-digit gain. The share price trajectories of sister companies reacting to the same news diverged sharply within a single trading day.
While the KOSPI reclaimed the 5,700 threshold on the back of foreign buying, the rally remained heavily concentrated in large-cap stocks like semiconductors. While large caps advanced 3.6%, mid- and small-caps declined, and foreign net selling persisted on the KOSDAQ.
