The KOSPI index is showing a gain of over 2% in early trading. Expectations for increased semiconductor demand due to Alphabet's expansion in artificial intelligence (AI) investments are driving up shares of Samsung Electronics and SK Hynix.
As of 9:04 a.m. on July 23, the KOSPI rose by 183.40 points (2.70%) to reach 6,981.10, briefly surpassing the 7,000 mark during the session.
In the stock market, foreign investors have made a net purchase of 153.8 billion won, while individuals and institutions have sold a net 44.7 billion won and 108 billion won, respectively.
Most of the top market capitalization stocks are on the rise. Samsung Electronics is trading at around 269,000 won, up over 3% from the previous trading day, while SK Hynix has increased by about 4%, surpassing 1.9 million won. Other stocks such as Samsung Electro-Mechanics, Hyundai Motor, and SK Square are also showing upward trends.
In terms of sectors, semiconductor-related stocks are performing strongly. Companies like Samsung Electronics, SK Hynix, Techwing, and TL Engineering are contributing to the index's rise.
Meanwhile, U.S. markets closed lower due to concerns over rising international oil prices and interest rates. The Dow Jones Industrial Average fell by 0.01%, the S&P 500 dropped by 0.14%, and the Nasdaq Composite declined by 0.57%.
However, Alphabet's announcement of an upward revision in its capital expenditure (CAPEX) forecast after the market close has bolstered investor sentiment in semiconductor stocks. The company raised its CAPEX guidance for the year from $185 billion to around $200 billion and plans to significantly increase investments next year.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Alphabet's strong performance and the upward revision of its CAPEX guidance have alleviated concerns regarding potential cuts in customer CAPEX and the peak of the memory cycle for domestic semiconductor stocks."
The KOSDAQ index is also on the rise. At the same time, the KOSDAQ index has increased by 15.46 points (2.06%) to 766.55. Individuals are net buying 15.2 billion won, while foreign investors and institutions are net selling 12.2 billion won and 3 billion won, respectively.
Among the top KOSDAQ stocks, Alteogen is up by over 1%, EcoPro has risen by about 3%, and EcoPro BM is up by over 1%. Rainbow Robotics has increased by over 5%, while Juseong Engineering has risen by around 4%.
A researcher noted, "Today, the domestic market is expected to continue its volatility due to mixed factors, including concerns over rising oil prices and interest rates, as well as the strong performance of semiconductor stocks following Alphabet's upward CAPEX guidance. The market may shift to a differentiated performance based on the earnings results of Hyundai Motor, NH Investment & Securities, and KB Financial during the session."
* This article has been translated by AI.
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