KOSPI Surges 1.66% on Chip Stocks and Government Support

Market Overview

The KOSPI index experienced a significant gain of 1.66%, closing at 4,087.18 on Monday, driven primarily by the technology sector. This upward movement was largely influenced by the positive performance of chip manufacturers following the rise of similar stocks in the US market. The technology sector, particularly electronics, led the gains with a 3.32% increase.

Key Drivers

1. Chipmakers' Performance: Samsung Electronics shares rose 3.15% while SK Hynix surged 5.12%, contributing significantly to the index's gain. This follows a positive trend in US tech stocks where Micron Technology jumped 7% and Nvidia rose 4%.
2. Government Support: The South Korean government reassured investors of its readiness to take preventive measures to stabilize financial markets if needed. This statement, made by Financial Services Commission Chairman Lee Eog-weon on Sunday, provided additional support to the market.
3. Foreign Investment: Foreign investors continued to show confidence in the Korean market with a net purchase of shares worth $261.27 million.

Sector Performance

• The electronics sector led gains with a 3.32% increase
• Battery manufacturer LG Energy Solution rose 1.85%
• E-commerce companies saw gains
• Pharmaceuticals experienced mixed results, with Samsung Biologics dropping 0.29% after announcing plans to acquire its first US-based drug production facility

Market Indicators

• The Korean won was quoted at 1,477.6 per USD, showing marginal appreciation from the previous close at 1,478.0
• March futures for three-year government bonds rose 0.04 points to 105.37
• The yield on the most liquid three-year government bonds dropped 2.4 basis points to 3.002%, while the 10-year benchmark yield rose 2.6 basis points to 3.355%