[Anchor]

The KOSPI has surged following better-than-expected earnings results from U.S. semiconductor firm Micron. Concerns over an AI bubble have subsided, and both Samsung Electronics and SK Hynix have fully recovered their recent losses. However, the number of declining stocks still far outweighs those that gained.

Reporter Min Gyeongho has the story.


[Reporter]

The domestic stock market opened sharply higher following the surprise earnings report from U.S. semiconductor company Micron, which was released early yesterday (June 25).

News that both revenue and profit for the third fiscal quarter exceeded market expectations reignited investor sentiment in the semiconductor sector.

Samsung Electronics and SK Hynix, which have been vying for the top spot in KOSPI market capitalization, rose by over 5% and 13%, respectively, fully recovering their recent losses.

SK Hynix, which announced after the market closed the day before yesterday that it would pursue a listing of American Depositary Receipts (ADRs) on the U.S. Nasdaq next month, even hit a new intraday high.

Driven by the rally in semiconductor stocks, the KOSPI remained strong throughout the day, with a sidecar (program trading curb) triggered, briefly reclaiming the 9,000-point mark before closing at 8,930, up 5.4%.

[Lee Jin-woo / Head of Research Center, Meritz Securities: As signs of increasing long-term contracts are now being meaningfully confirmed at Micron, expectations are re-emerging that the industry can break away from the (downward) cycle.]

However, as capital flooded into semiconductors, other stocks faced a liquidity crunch and struggled.

On the KOSPI, the number of declining stocks was double that of advancing ones.

The KOSDAQ, where decliners outnumbered gainers by three to one, fell 2.36%, slipping back below the 900-point level.

[Shin Seung-jin / Investment Information Team Leader, Samsung Securities: In the case of the KOSDAQ, disappointment-driven selling is triggering further selling, which is actually causing capital to concentrate even more into earnings-backed stocks like semiconductors.]

The deepening concentration in semiconductors has pushed the KOSPI 200 Volatility Index to an all-time high for six consecutive trading days, and the balance of margin loans borrowed from securities firms has reached a record high of 38.6 trillion won, both of which are sources of concern.

Furthermore, the high exchange rate, which has remained in the 1,540 won range at closing for two consecutive days, and the fact that foreign investors have been net sellers for five straight trading days, could limit further gains.

(Reported by Choi Ho-jun and Park Hyun-cheol | Video edited by Park Chun-bae)