[Market Opening Summary] KOSPI Soars to 3880 Level on U.S. Tailwinds ⋯ SK Hynix Surpasses 500,000 Won for the First Time

The KOSPI continued its strong performance on the 22nd, breaking through the 3880 level during trading. This is attributed to signs of resolving the US shutdown crisis, easing US-China trade tensions, stabilization of regional bank troubles, and growing expectations ahead of the earnings season. SK Hynix also surpassed 500,000 won in early trading.

As of 9:27 AM on the 21st, according to the Korea Exchange, the KOSPI index was up 65.49 points (1.72%) at 3880.18 compared to the previous trading day. The KOSPI opened at 3851.01, up 36.32 points (0.95%) from the previous day's close of 3814.69, and continued to widen its gains.

Expectations Rise for Earnings Season as External Factors Ease

In the securities market, individual and foreign investors are leading the index with net purchases of 64.9 billion won and 52.1 billion won respectively. On the other hand, institutions are net selling 75.3 billion won.

Han Ji-young, a researcher at a securities firm, analyzed, “There's a growing atmosphere of expectation for the earnings season amid signs of resolving the US shutdown crisis, easing US-China trade tensions, and stabilization of regional bank troubles. The KOSPI continued its strong performance from the previous day when it hit an all-time high, following the rebound in US markets.”

The researcher added, “It's judged that if the US federal government reopens, uncertainty will be resolved and additional market momentum could be generated due to increased fiscal spending. In fact, in the past, the S&P 500 has recorded an average favorable return of 6.6% during the 100 days after a shutdown ended.”

Real Estate Only Sector to Decline… Samsung Electronics Hits New High, SK Hynix Breaks 500,000 Won for First Time

By sector, all are on the rise except for real estate (-0.15%). Electric & Gas (5.36%), Construction (3.46%), and Transportation Equipment Parts (3.40%) are leading the gains.

Among the top market cap stocks on the KOSPI, all are rising except for LG Energy Solution, which remains flat. Samsung Electronics rose 1.12% to hit a new high of 99,200 won, while SK Hynix also rose 2.99% to break through 500,000 won. HD Hyundai Heavy Industries (6.45%) and Hyundai Motor (5.04%) are also showing strong performance.

At the same time, the KOSDAQ index is up 2.87 points (0.33%) at 878.64. The index started trading at 881.53, up 5.76 points (0.66%) from the previous day's close of 875.77, and continued to rise.

In the KOSDAQ market, individual investors alone bought 160.9 billion won worth of shares. On the other hand, foreign investors and institutions sold 121.5 billion won and 15.6 billion won worth respectively.

Bull Market Expands from Semiconductors to Overall Sectors

KOSDAQ sectors are mixed. Metals (1.80%), Transportation Equipment Parts (1.15%), and Pharmaceuticals (1.11%) are strong. On the other hand, Textile & Apparel (-0.40%), Finance (-0.33%), and Construction (-0.03%) are weak.

Among the top market cap stocks on KOSDAQ, all are declining except for HLB (11.77%) and Peptron (0.18%). EcoPro BM (-1.93%), EcoPro (-1.93%), and Rainbow Robotics (-1.13%) are showing weakness.

The researcher analyzed, “As external uncertainty factors are gradually resolved, the market is expected to focus on the big tech earnings scheduled for the end of the month and the October FOMC meeting. Currently, US market earnings forecasts continue to rise, increasing expectations for earnings surprises.”

He continued, “Despite growing profit-taking desires due to consecutive record highs, the domestic market is expected to maintain a favorable trend on expectations for the earnings season as external uncertainty conditions ease. Unlike September, which was dominated by semiconductors, the recent domestic market is seeing a bull market expanding across sectors including semiconductors, secondary batteries, automotive power equipment, and securities.”

In the Seoul foreign exchange market, the won/dollar exchange rate opened at 1,421.0 won, up 1.8 won from the previous day's weekly trading close (1,419.2 won).