Kospi Tops 7,100 as US Chip Stocks Rally and Middle East Tension Eases
Summary
- The Kospi climbed above 7,100 on gains in U.S. semiconductor stocks and expectations of easing tensions in the Middle East.
- On the main Kospi market, net buying by foreign and institutional investors and net selling by retail investors helped drive the index higher.
- Falling global oil prices tied to expectations for easing U.S.-Iran tensions, along with strength in AI and semiconductor stocks, supported South Korean equities.
Forecast Trend Report by Period
The Kospi rose more than 1% in early trading on September 23, topping the 7,100 mark as gains in U.S. semiconductor stocks and expectations of easing geopolitical tensions in the Middle East lifted sentiment.
As of 9:10 a.m., the benchmark Kospi was up 115.45 points, or 1.65%, at 7,133.36 from the previous session.
On the main board, foreign investors and institutions were net buyers of 212.9 billion won and 53.3 billion won, respectively, leading the index higher. Retail investors were net sellers of 275 billion won.
Overnight gains in artificial intelligence and semiconductor shares on Wall Street also supported South Korean stocks. Micron rose 5.0% in New York, Nvidia added 0.66%, and the Philadelphia Semiconductor Index climbed 2.06%.
Expectations for easing tensions between the United States and Iran also underpinned investor sentiment. Oil prices fell after reports that Iran had proposed reopening the Strait of Hormuz within a week on the condition that U.S. military pressure be eased. Brent crude for November delivery and West Texas Intermediate for October delivery fell 1.1% and 1.2%, respectively, dropping below $100 a barrel.
Among large-cap stocks, Samsung Electronics, SK Hynix, SK Square, Samsung Electro-Mechanics, LG Energy Solution, Hyundai Motor, KB Financial Group, Samsung C&T and Samsung Life Insurance were higher. Samsung Biologics and Doosan Enerbility traded lower.
The Kosdaq also advanced. At the same time, the Kosdaq index rose 10.63 points, or 1.27%, to 845.01.
On the Kosdaq, retail investors were net buyers of 54.5 billion won, while foreign and institutional investors were net sellers of 35.6 billion won and 13.8 billion won, respectively.
Among individual stocks, Alteogen, EcoPro, EcoPro BM, Jusung Engineering, Rainbow Robotics, Wonik IPS and EO Technics gained. Lino Industrial and Simtech fell.
