Seoul: South Korean stocks achieved a new all-time high following the seven-day Chuseok holiday, driven by strong performances from Samsung Electronics and SK hynix, although the local currency slid to a more than five-month low.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) rose by 61.39 points, or 1.73 percent, closing at 3,610.6. This marked the first time the index surpassed the 3,600 line, continuing a record-high trend from the previous session on October 2, when it ended at 3,549.21. The market saw significant trading activity, with a volume of 401.5 million shares valued at 19.2 trillion won (approximately US$13.5 billion). Declining stocks outnumbered advancing ones, with 621 decliners compared to 275 gainers.
Foreign investors purchased a net 1.06 trillion won worth of shares, while retail and institutional investors offloaded 502 billion won and 594.5 billion won worth of shares, respectively. Analysts attributed the positive investor sentiment to reports of Samsung Electronics renewing its partnerships with U.S. chipmakers Qualcomm and Intel. Additionally, the U.S. government's approval of Nvidia's chip sales for projects in the United Arab Emirates positively impacted SK hynix, a major Nvidia supplier.
Lee Jae-won, an analyst from Shinhan Securities, noted the influence of rising semiconductor stocks in the U.S. and Japan during the market closure, which contributed to the KOSPI's gains. He also mentioned forecasts predicting a favorable phase or supercycle for the memory industry. Samsung Electronics saw a significant increase of 6.07 percent to 94,400 won, while SK hynix surged 8.22 percent to 428,000 won. Hanmi Semiconductor, a chipmaking equipment supplier, rose by 18.39 percent to 119,100 won.
As a result of this rally, Samsung Electronics' market value exceeded 550 trillion won, and SK hynix surpassed 300 trillion won. Other notable gains included Naver, which climbed 5.73 percent to 267,500 won, and Kakao, which advanced 4.19 percent to 62,100 won. Doosan Enerbility, a power plant manufacturer, surged 14.97 percent to 74,500 won, and Samsung Heavy Industries increased by 2.52 percent to 22,400 won. In the entertainment sector, K-pop company Hybe rose 1.87 percent to 272,500 won, and content production studio CJ ENM gained 1.14 percent to 71,100 won.
Conversely, defense stocks declined following a ceasefire agreement in the Middle East. Hanwha Aerospace fell 5.01 percent to 1.04 million won, and LIG Nex1 decreased by 4.95 percent to 480,000 won. In the automotive sector, Hyundai Motor dropped 1.36 percent to 217,000 won, and Kia fell 3.45 percent to 100,600 won.
The won was quoted at 1,421 against the U.S. dollar at 3:30 p.m., marking a 21 won decrease from the previous session. This exchange rate was the lowest since April 30, when it last stood at 1,421 won.