KOSPI rises on semiconductor strength and HBM growth prospects

The South Korean stock market, specifically the KOSPI, has shown recent volatility and upward trends driven largely by the semiconductor sector. Following strength in U.S. tech stocks, major domestic players like Samsung Electronics and SK Hynix have seen significant price movements.

While some analysts expressed caution regarding third-quarter earnings for Samsung Electronics due to slowing DRAM price growth, market sentiment remains buoyed by long-term growth expectations in High Bandwidth Memory (HBM) and foundry services. Analysts from firms such as Kiwoom Securities and Daishin Securities have highlighted the shift in investment focus from general memory to specialized AI-related components.

Market activity has also been influenced by seasonal factors, such as profit-taking ahead of the Chuseok holiday, and macroeconomic variables including fluctuations in the KRW/USD exchange rate and international oil prices. Despite individual investor selling, institutional and foreign investor activity has played a critical role in supporting the index's recovery toward the 7,000-point level.