On a Thursday in late June 2021, South Korea's stock market reached a new peak, carried mostly by its semiconductor giants Samsung Electronics and SK Hynix. It is a moment that tells two stories at once: an economy recovering from pandemic strain and rising with the technology that powers the world, while foreign investors quietly step back and the central bank signals that the era of easy money is beginning to loosen. The gains rest on chips, not on breadth, and the market waits, patient and watchful, for the American jobs report that will shape what comes next.
South Korean Stocks Close at Record High as Chip Giants Lead KOSPI to 3,286.10
A record high, built mostly on chips, with foreign money heading out
Mark
So the KOSPI hit a record. What carried it?
Mimi
Chips. Samsung Electronics rose 1.37% and SK Hynix 1.61%, following a record close on the Nasdaq. The index finished at 3,286.10, up 0.30%.
Mark
That's a small gain for a record.
Mimi
Right, 9.91 points. It was the third straight daily gain, so it's an accumulation more than a jump.
Luke
And it wasn't broad. Naver and LG Chem both fell. The report doesn't say how many stocks rose or fell overall, so I wouldn't call it a market-wide rally.
Mark
Foreigners were selling too, weren't they?
Mimi
Net sales of 106.3 billion won, about $93.72 million, on the main board.
Luke
The report doesn't explain why they sold. Anything beyond the figure would be guessing.
Mark
What about the central bank?
Mimi
It said it sees inflationary pressure from both demand and supply, which reinforces views it is shifting toward less accommodative policy. Bond yields rose, with the three-year at 1.381%.
Luke
Note the wording: it reinforces a view held by others. The bank hasn't announced a policy change here. And the analyst's call for a gradual rise is one person's opinion.
Mark
So what should we watch?
Mimi
Next week's U.S. jobs data, which Huh Jae-hwan said investors will follow closely.
Il Polso
- The KOSPI climbed to an all-time high of 3,286.10, its third straight gain, yet the rally rests on just a handful of chip stocks.
- Foreign investors dumped 106.3 billion won in main-board shares even as the index hit its peak, unsettling the calm.
- The Bank of Korea warned of rising inflation pressure on both demand and supply, pushing markets to anticipate tighter policy.
- The won strengthened to 1,134.9 per dollar and bond yields climbed, while traders hold back until next week's U.S. jobs data arrives.
On a Thursday in late June 2021, South Korea's stock market reached a new peak, carried mostly by its semiconductor giants Samsung Electronics and SK Hynix. It is a moment that tells two stories at once: an economy recovering from pandemic strain and rising with the technology that powers the world, while foreign investors quietly step back and the central bank signals that the era of easy money is beginning to loosen. The gains rest on chips, not on breadth, and the market waits, patient and watchful, for the American jobs report that will shape what comes next.
South Korean shares closed Thursday, June 24, at an all-time high. The benchmark KOSPI rose 9.91 points to 3,286.10, its third consecutive gain, lifted mostly by the chip heavyweights that had followed a record finish on the Nasdaq. Samsung Electronics climbed 1.37% and SK Hynix gained 1.61%, while Naver and LG Chem slipped, so the record leaned almost entirely on semiconductors.
Beneath the headline, foreign investors were leaving. They sold a net 106.3 billion won in main-board shares, roughly $93.7 million, so the peak arrived even as overseas money drew back. Analyst Huh Jae-hwan of Eugene Investment & Securities described a market in no hurry, expecting a gradual climb while investors wait after the Federal Reserve's policy meeting and the coming U.S. jobs figures.
The Bank of Korea added a note of caution, saying it sees upward inflation pressure on both demand and supply as the country recovers from the pandemic. That signal pointed toward a less accommodative policy ahead. In currency markets the won firmed 0.25% to 1,134.9 per dollar, and bond yields rose, with the 10-year climbing to 2.046%. The next test is the U.S. jobs report, and whether the central bank's words turn into firmer action.
South Korean shares ended Thursday, June 24, at an all-time high. The benchmark KOSPI closed up 9.91 points, or 0.30%, at 3,286.10. It was the index's third consecutive daily gain, and the lift came mostly from the country's chip heavyweights, who followed a record finish on the Nasdaq.
Samsung Electronics rose 1.37% and SK Hynix gained 1.61%. Not every large name moved the same way. Internet company Naver slid 0.94% and battery maker LG Chem fell 0.48%, so the record rested largely on semiconductors.
Foreign investors, however, were selling. They were net sellers of 106.3 billion won worth of shares on the main board, about $93.72 million. The index reached its high even as foreign money was leaving.
Huh Jae-hwan, an analyst at Eugene Investment & Securities, described a market in no hurry. He said the KOSPI is on track for a gradual rise while investors hold a wait-and-see stance following the U.S. Federal Open Market Committee meeting. He said next week's U.S. jobs data will be closely watched.
The Bank of Korea added to the day's backdrop. It said it sees upward inflationary pressure on both the demand and supply sides as the country recovers from the pandemic. The statement reinforced the view that the central bank is moving toward a less accommodative policy.
In currency trading, the won strengthened. It ended at 1,134.9 per dollar on the onshore settlement platform, up 0.25%. Offshore, it was quoted at 1,134.7 per dollar, up 0.1%. The one-month non-deliverable forward contract was quoted at 1,134.4. The reference rate cited was 1,134.17 won to the dollar.
Bond yields rose. September futures on three-year treasury bonds fell 0.12 point to 110.18. The most liquid three-year Korean treasury yield rose 4.3 basis points to 1.381%. The benchmark 10-year yield rose 0.5 basis point to 2.046%.
The next marker is the U.S. jobs report due next week, which investors are watching, along with whether the central bank's inflation language turns into a firmer policy stance.
Citazioni salienti
KOSPI is on track for a gradual rise while investors take a wait-and-see stance after the FOMC; next week's U.S. jobs data will be closely watched.— Huh Jae-hwan, analyst, Eugene Investment & Securities
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