SK hynix and Samsung Electronics surge, lifting KOSPI by 6.63% amid robust electrical and electronics sector gains
KOSDAQ advances 3.69% as robotics, semiconductor equipment, and earnings-driven shares rally together
South Korean domestic equity markets rallied across the board on October 28, with both the KOSPI and KOSDAQ indexes posting sharp gains. Sentiment improved following overnight strength on Wall Street and receding concerns over artificial intelligence (AI) capital expenditures. Bolstered by stellar corporate earnings reports and expanded shareholder return plans, heavy-hitting semiconductor stocks drew a concentration of buying. Pushed by net purchases from both foreign and institutional investors, the KOSPI successfully reclaimed the 6,000 threshold.
According to the Korea Exchange (KRX), the KOSPI finished the session up 374.10 points, or 6.63%, at 6,012.44. The tech-heavy KOSDAQ rose 27.45 points, or 3.69%, to close at 771.28. In the interbank foreign exchange market, the won-dollar exchange rate closed daytime trading up 14.0 won at 1,337.7 won.
The KOSPI opened higher, tracking overnight strength in U.S. equities and improving AI-related sentiment. The market extended its gains as foreign and institutional investors poured into the electrical and electronics sectors, driven by rising expectations for solid corporate earnings and enhanced shareholder payouts among major domestic firms.
By sector, electrical and electronics jumped 9.0%, insurance advanced 6.4%, securities climbed 5.5%, and medical & precision instruments added 5.3%. Large-cap stocks rose 7.1%, medium-caps gained 1.8%, and small-caps ticked up 0.7%, highlighting a large-cap-led rally.
In the supply-demand breakdown, foreign and institutional investors net purchased 823.3 billion won and 960.2 billion won, respectively, while retail investors net sold 1.8017 trillion won. Foreign capital targeted electrical and electronics with 779.5 billion won in net buying, followed by general services at 81.5 billion won and chemicals at 59.2 billion won.
The KOSDAQ advanced for a second consecutive session, driven by institutional buying centered on machinery & equipment and electrical and electronics. By sector, machinery & equipment surged 6.6%, electrical and electronics gained 4.6%, and chemicals rose 4.4%. Institutional investors net bought 224.8 billion won, while foreign and retail investors net sold 183.5 billion won and 31.6 billion won, respectively.
Semiconductor Heavyweights Surge; Robotics Stocks Rally on Nvidia Executive Visit Reports
SK hynix (000660) surged 10.89% after reporting record-breaking third-quarter earnings and unveiling a massive shareholder return plan. Samsung Electronics (005930) also climbed 9.01% amid easing concerns over AI investments and growing optimism for a turnaround in the semiconductor industry cycle.
Robotics-related shares also showed strong momentum. Rainbow Robotics (277810) jumped 15.08%, and Roborostis (108490) advanced 9.76%. Expectations for expanded cooperation with domestic robotics firms grew following news that Madison Huang, senior director and eldest daughter of Nvidia CEO Jensen Huang, will attend the upcoming 'Nvidia AI Day' to be held in Seoul next month.
P&S Robotics (460940) hit the daily upper price limit, soaring 29.95% on growth expectations driven by the expansion of its supplies to large-scale rehabilitation institutions in Mexico and the growth of its upper-limb rehabilitation robotics business.
Individual Stocks Rally on Tender Offers, Overseas Orders, and Earnings Beats
Gabia (079940) and KINX (093320) surged 25.94% and 29.96%, respectively, following news that they reached agreements on tender offer terms with Macquarie.
Stocks tied to overseas orders also performed strongly. Light & Electronics (069540) spiked 29.88% on the announcement that it had secured an initial mass-production order for 25Gbps optical transceivers from a U.S. optical communications company. Techwing (089030) rose 7.19% after disclosing a semiconductor test equipment supply contract worth approximately 9.5 billion won with Micron's India unit. HVM (295310) gained 9.47% on news of a superalloy supply contract valued at about 23.3 billion won with an overseas aerospace metals firm.
Earnings-driven names also trended higher. AhnLab (053800) jumped 19.63% after reporting a consolidated operating profit of 10.9 billion won for the third quarter, up 38.7% from the same period a year earlier.
HD Hyundai Marine Engine (071970) climbed 14.49% on solid earnings, posting a third-quarter operating profit of 60.3 billion won, a 197.2% surge year-on-year.
Hanmi Pharmaceutical (128940) added 5.42% after deciding to retire 85,316 shares of its treasury stock, valued at approximately 28.3 billion won.
Conversely, LG Innotek (011070) fell 1.74% as its third-quarter operating profit dropped 53.4% year-on-year to 94.8 billion won.
GC Cell (144510) plummeted 19.15% after its U.S. affiliate, Artiva Biotherapeutics, suspended clinical development for its natural killer (NK) cell therapy candidate, 'AlloNK.'
