Strong earnings from U.S. AI infrastructure firms and robust exports boost investor sentiment; foreign investors net buy 657.3 billion won.
KOSDAQ reclaims 700-point level with buy-side circuit breakers triggered; semiconductor equipment and AI substrate stocks surge.
On November 11, the South Korean stock market saw both the KOSPI and KOSDAQ indices close higher. Investor sentiment improved following strong earnings from U.S. artificial intelligence (AI) infrastructure companies and positive domestic export data, leading to expanded buying, particularly in semiconductor-related stocks. Bolstered by foreign net buying, the KOSPI reclaimed the 5300 level, while the KOSDAQ surged over 5%, further fueled by expectations of market revitalization policies.
According to the Korea Exchange, the KOSPI closed at 5375.36, up 136.23 points (2.60%). The KOSDAQ finished at 705.10, rising 37.49 points (5.62%). The won-dollar exchange rate closed at 1,333.6 won, down 3.9 won from the previous trading day.
The KOSPI opened lower due to the weakness of tech stocks in overseas markets the previous day. However, it shifted to a rally as foreign buying flowed into the electrical, electronics, and financial sectors, driven by improved sentiment regarding U.S. AI infrastructure performance and domestic exports.
By sector, medical and precision equipment rose 10.5%, electrical and electronics 4.3%, machinery and equipment 2.1%, and entertainment and culture 2.0%. Large-cap stocks rose 2.8%, mid-cap stocks 0.9%, and small-cap stocks 1.1%.
In terms of supply and demand, foreign investors net bought 657.3 billion won, while institutions and individuals net sold 481.2 billion won and 713.2 billion won, respectively. Foreigners focused their buying on electrical and electronics (638.8 billion won), finance (95.6 billion won), and pharmaceuticals (11.8 billion won).
The KOSDAQ saw broad-based strength as expectations for market revitalization policies took center stage. By sector, machinery and equipment rose 10.0%, non-metals 8.1%, and electrical and electronics 7.9%. Institutions net bought 314.1 billion won, while foreigners and individuals net sold 132.4 billion won and 185.7 billion won, respectively.
Semiconductor Equipment Stocks Surge on HBM and AI Infrastructure Investment Hopes
Wonik IPS (240810) jumped 16.52% following a third-quarter earnings surprise, reflecting expectations for increased semiconductor equipment supply and growth in the fourth quarter. YEST (122640) rose 15.59% as its third-quarter operating profit reached 11 billion won, a tenfold increase compared to the same period last year. SemiTS (0017J0) climbed 11.38% on news of a turnaround to profit in the third quarter, driven by the full-scale revenue recognition of its Automated Material Handling System (AMHS) project.
STI (039440) surged 21.74% on expectations of increased orders for High Bandwidth Memory (HBM) equipment and new semiconductor plant investments. Techwing (089030) also rose 20.87% on anticipated demand for HBM testing equipment due to expanded AI infrastructure investment. TSE (131290) jumped 23.24% on growth prospects for its semiconductor testing equipment and probe card businesses.
AI server substrate-related stocks also rose in tandem. ISU Petasys (007660) climbed 19.36% on expectations for the aerospace industry following strong earnings from U.S. space firm Rocket Lab, and the outlook for increased demand for high-layer count printed circuit boards (MLB) for AI servers. Korea Circuit (007810) surged 25.58% on expectations for high-performance substrate demand for data centers. CK Solution (480370) hit the daily upper limit, rising 29.92% on a third-quarter earnings surprise, with increased orders in semiconductors, data centers, and defense contributing to the performance.
Individual Stocks Rally on Earnings Improvements and Shareholder Returns
TYM (002900) rose 14.46% on strong third-quarter results and a decision to acquire treasury shares, while Hanjin (002320) jumped 15.61% following a decision to cancel approximately 20 billion won worth of treasury shares. Paradise (034230) rose 7.96% as its third-quarter performance exceeded market expectations, and EcoPro BM (247540) climbed 11.39% on a decision to acquire shares of a subsidiary to expand its Indonesian smelter business.
AhnLab (053800) rose 8.78% following news of a hacking incident at the Financial Security Institute, which heightened expectations for increased security investments in the financial sector. LaMeditech (462510) hit the daily upper limit, rising 29.95% after announcing the completion of its FDA 510(k) pre-market notification filing for its skin laser device, 'LA·INJET'.
Conversely, E-mart (139480) fell 8.05% due to weak third-quarter consolidated results. While profitability in its core discount store business improved, the 45.3 billion won operating loss recorded by SCK Company, the operator of Starbucks, weighed on the consolidated performance. Shift Up (462870) plunged 14.51% as its third-quarter operating profit fell 58.2% year-on-year to 20.7 billion won. Krafton (259960) fell 9.56% as its third-quarter results missed market forecasts. BaroPharm (0153R0), which debuted on the KOSDAQ today, fell 28.17% from its offering price of 16,400 won amid heavy selling pressure on its first day of trading.
