This photo, taken Monday, shows the trading room of Hana Bank in central Seoul as South Korean stocks reached a record high on AI-led chip and power equipment rally. Photo by Yonhap

Seoul Stocks Hit Record High Amid AI Boom

Seoul’s stock market surged to a record high on Monday, driven by a strong rally in artificial intelligence (AI)-related chips and power equipment. The robust performance also saw the Korean won appreciate against the U.S. dollar.

Benchmark Index Achieves New All-Time High

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 139.4 points, or 2.15 percent, reaching 6,615.03. This milestone comes just two trading days after it previously peaked at 6,475.81 on Thursday.

Heavy Trading Volume Suggests Strong Market Activity

Trading volume was significant, with 835.6 million shares changing hands, totaling 33 trillion won (approximately US$22.4 billion). The session saw 495 stocks gaining, outpacing 357 that lost ground.

Investor Sentiment and Earnings Anticipation

Foreign and institutional investors were net buyers, acquiring a total of 1.99 trillion won in equities, while retail investors sold a net 1.97 trillion won worth of shares. This record close has generated excitement ahead of upcoming earnings reports from major global tech companies.

Strong Performance from Semiconductor Giants

Analyst Lee Kyoung-min from Daishin Securities noted that there is heightened anticipation for firms linked to AI data centers, particularly in the semiconductor and power equipment sectors. Major players like Samsung Electronics and SK hynix are expected to benefit from strong earnings.

Major Tech Earnings Set to Drive Market Trends

This week, five companies from the “Magnificent Seven” (M7) group—including Apple, Alphabet, and Microsoft—are slated to release their first-quarter earnings. Their results could have significant implications for the stock market.

Geopolitical Factors and Market Dynamics

Investor sentiment appears to be improving, particularly as geopolitical uncertainties related to the Middle East seem to be abating. In Seoul, large-cap shares, especially those in the chip and power equipment sectors, closed the day positively.

Sector Performance: Chips vs. Batteries

Market bellwether Samsung Electronics rose by 2.28 percent to 224,500 won, while SK hynix gained 5.73 percent, closing at 1,292,000 won. In contrast, battery manufacturers experienced profit-taking, with LG Energy Solution dropping 3.53 percent to 464,000 won and Samsung SDI declining by 0.94 percent to 635,000 won.

Currency and Bond Market Trends

The Korean won strengthened against the U.S. dollar, quoted at 1,472.5 won, an increase of 12 won from the previous session. In bond markets, prices rose as the yield on three-year Treasurys decreased by 0.4 basis points to 3.492 percent, and the benchmark five-year government bonds fell 0.7 basis points to 3.676 percent.

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South Korean Stocks Hit Record High Amid AI Rally

A recent surge in South Korea’s stock market has led to a new record close, largely influenced by a rally in the artificial intelligence (AI) sector, particularly in semiconductor and power equipment stocks. The Korea Composite Stock Price Index (KOSPI) has reached unprecedented levels, signaling investor confidence and optimism about future corporate earnings.

Market Overview

On Monday, the KOSPI closed at 6,615.03, marking an increase of 139.4 points, or 2.15%. This new high was achieved just two trading sessions after hitting a previous high of 6,475.81. The trading volume was robust, with 835.6 million shares changing hands, amounting to 33 trillion won (approximately $22.4 billion).

Investors’ Sentiment

Investor sentiment has been buoyed by upcoming quarterly earnings announcements from major global technology firms. Increasingly, market analysts anticipate strong financial reports from companies integrated within the AI supply chain. Leading tech companies such as Samsung Electronics and SK hynix are expected to contribute significantly to this optimistic outlook.

Foreign Investment Trends

Foreign investors and institutional buyers played a critical role in this recent climb, collectively acquiring a net worth of 1.99 trillion won in equities. Meanwhile, retail investors sold off a net 1.97 trillion won. Despite these mixed trends, the overall market demonstrates a strong upward trajectory.

Sector Performance

Large-cap stocks, especially in the semiconductor and power equipment sectors, led the charge. Notably, Samsung Electronics rose by 2.28% to reach 224,500 won, while SK hynix saw a remarkable 5.73% increase, closing at 1,292,000 won. These gains can be attributed in part to Intel’s recent strong Q1 earnings report, which surpassed analyst expectations.

Power Equipment Stocks Shine

Power equipment manufacturers also experienced significant gains, with companies like LS Electric and Hyosung Heavy Industries climbing by 12% and 10.95%, respectively. Conversely, battery manufacturers faced a downturn as investors took profits, with LG Energy Solution and Samsung SDI declining by 3.53% and 0.94% respectively.

Currency and Bond Market Updates

The Korean won appreciated against the U.S. dollar, quoted at 1,472.5 won, reflecting a gain of 12 won from the previous session. Additionally, bond market data showed an inverse relationship with yields, as the return on three-year Treasurys dipped to 3.492%, while benchmark five-year government bonds fell to 3.676%.