TLDR
- The KOSPI finished Friday’s session at 6,977.94, jumping 2.42% and momentarily touching 7,000 for the first time in three weeks
- Samsung Electronics posted weekly gains exceeding 18%; SK Hynix climbed approximately 12% over the week
- The benchmark has surged nearly 25% since hitting bottom on July 30, confirming a technical bull market entry
- International investors net purchased 3.03 trillion won ($2.13 billion) in equities on Friday
- America’s Producer Price Index registered 4.7% annually in July, undershooting the 4.9% projection
South Korea’s primary equity benchmark concluded its most impressive weekly performance since the beginning of June on Friday, fueled by semiconductor stocks bouncing back and encouraging inflation metrics from the United States.
The KOSPI finished trading at 6,977.94, advancing 2.42% during the session. The index momentarily pierced the 7,000 threshold for the first time in nearly a month before retreating as market participants locked in profits following five consecutive sessions of advances.
The benchmark snapped a seven-week decline and has now climbed nearly 25% from its trough on July 30, officially entering technical bull market territory.
Semiconductor Giants Power Weekly Rally
Samsung Electronics and SK Hynix spearheaded the week’s impressive comeback. Samsung was poised to deliver weekly returns exceeding 18%, while SK Hynix registered approximately 12% gains during the same timeframe. Friday’s trading session saw SK Hynix advance 3.26% to settle at 1,645,000 won, with Samsung climbing 2.43% to close at 274,500 won.
These semiconductor heavyweights were among the most severely impacted during the previous month’s tech sector downturn, sparked by anxieties surrounding artificial intelligence capital expenditures and the forced liquidation of leveraged trading positions.
Memory chip sector optimism received a boost following Sandisk‘s presentation of a positive long-range forecast during its investor day event. The corporation announced ambitious revenue growth targets in the mid- to high-teens percentage range annually extending through 2030, while committing to distribute 100% of surplus free cash flow back to stakeholders.
International market participants demonstrated strong buying interest on Friday, acquiring a net total of 3.03 trillion won, approximately $2.13 billion in value. Domestic institutional players and individual traders were net sellers during the session.
Favorable U.S. Price Data Enhances Market Sentiment
American inflation statistics published this week bolstered the overall market atmosphere. The Producer Price Index advanced 4.7% on an annual basis in July, landing beneath the anticipated 4.9% figure. Core PPI increased 4.2%, matching analyst expectations.
These figures alleviated worries regarding potential near-term interest rate increases from the Federal Reserve, contributing to improved investor sentiment throughout international markets, including South Korea.
Beyond the semiconductor space, additional sectors experienced upward momentum. Shipbuilding companies such as Hanwha Ocean and HD Korea Shipbuilding & Offshore Engineering surged following America’s decision to permit foreign enterprises to construct up to two military vessels within their domestic facilities.
Automotive-linked equities also appreciated on news that Hyundai Motor Group is restructuring its robotics procurement network.
LG Electronics experienced price appreciation after LG Group Chairman Koo Kwang-mo and Nvidia CEO Jensen Huang reconvened following a two-month interval to strengthen their collaboration in physical artificial intelligence applications.
The Kosdaq index continued its positive trajectory, increasing 0.38% to finish at 864.65. The Korean won concluded trading at 1,418.3 against the dollar, weakening 1.1 won compared to the prior session.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
