The KOSPI surged over 4% to near the 7,100 mark, bolstered by 2 trillion won in net purchases from foreign investors. Expectations for Alphabet's expansion in artificial intelligence (AI) investments fueled gains in semiconductor stocks, with buying interest also spreading to power equipment, secondary batteries, and biotechnology sectors.
On July 23, the KOSPI closed at 7,096.89, up 299.19 points (4.40%) from the previous trading day. At one point during the session, it rose to 7,137.20, surpassing the 7,100 level.
In the securities market, foreign investors led the index's rise with net purchases of 2.1351 trillion won, while institutions also bought 101.1 billion won. In contrast, individual investors sold a net 2.2107 trillion won.
Most of the top market capitalization stocks saw gains. Samsung Electronics closed up 3.65% at 270,000 won, while SK Hynix rose 4.86% to 1,919,000 won. Other strong performers included LG Energy Solution (up 8.41%), Samsung Electro-Mechanics (up 7.66%), and Hyundai Motor (up 3.35%).
Analysts attribute the positive sentiment to Alphabet's strong performance and increased capital expenditures (CAPEX), which have bolstered investor confidence in AI-related investments. Alphabet reported an 82% year-on-year increase in cloud revenue for the second quarter and confirmed its commitment to expanding data center investments.
Lee Kyung-min, a researcher at Daishin Securities, stated, "Alphabet's robust cloud performance and CAPEX expansion reaffirmed strong demand for AI infrastructure and data center investments, supporting AI investment sentiment." He added, "Despite external uncertainties, foreign investors have continued net buying for four consecutive trading days, driving the index higher."
The expectation of increased data center investments also boosted stocks related to power infrastructure. The need for enhanced power infrastructure has become apparent due to supply disruptions in power grids in areas densely populated with data centers in the U.S., leading to significant gains for companies like LS ELECTRIC and HD Hyundai Electric.
The KOSDAQ index closed at 790.28, up 39.19 points (5.22%) from the previous trading day. Foreign and institutional investors net bought 133 billion won and 60.3 billion won, respectively, while individuals sold a net 198.5 billion won.
Among the top KOSDAQ stocks, Alteogen surged 14.37%, while EcoProBM (up 9.95%), EcoPro (up 9.34%), ABL Bio (up 7.06%), and Rainbow Robotics (up 6.17%) also saw significant increases.
Despite external uncertainties, including rising international oil prices, the market's gains were fueled by substantial foreign capital inflows and expectations for AI investments. With the KOSPI briefly surpassing the 7,100 mark, the sustainability of foreign buying and the performance of major domestic and international companies will likely determine future market movements.
* This article has been translated by AI.
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