KOSPI and KOSDAQ indices surged on the 23rd, with KOSPI reclaiming the 7000-point level after 5 trading days and KOSDAQ triggering a buy-side circuit breaker. KOSPI closed at 7096.89, up 299.19 points or 4.40%, while KOSDAQ jumped 5.22% to 790.28. The rally was driven by Google parent company Alphabet's better-than-expected Q2 earnings and expanded CAPEX guidance, which revived semiconductor investment sentiment. Foreign investors led the buying spree, purchasing 2.148 trillion won in KOSPI and 133.5 billion won in KOSDAQ, while institutional investors added 100.1 billion won and 60.3 billion won respectively. The recovery comes amid ongoing AI infrastructure demand signals from major tech companies, though uncertainty remains with upcoming big tech earnings and the July 28th FOMC meeting.
Alphabet Earnings Drive Semiconductor Stock Recovery
Alphabet reported Q2 cloud revenue up 82% year-over-year and CAPEX expansion of 100%, according to Lee Kyung-min, FICC Research Head at Daishin Securities. "Through this, we reconfirmed robust AI infrastructure demand and the trend of expanding data center investment, which supported AI investment sentiment," Lee stated. Han Ji-young, researcher at Kiwoom Securities, noted that "Alphabet's CAPEX increase is a signal that AI and cloud demand has not weakened, which also eased demand concerns for domestic semiconductor stocks."
Foreign Investors Purchase 2.756 Trillion Won in SK Hynix
Foreign investors have net purchased 5.5841 trillion won cumulatively over four consecutive days from the 20th to the 23rd. They focused on bargain-hunting in semiconductor stocks, buying 2.756 trillion won in SK Hynix and 1.7286 trillion won in Samsung Electronics. The two stocks rose 3.65% and 4.86% respectively on the 23rd. Individual investors sold 2.2097 trillion won in KOSPI and 198.5 billion won in KOSDAQ during the same session.
KOSDAQ Buy-Side Circuit Breaker Triggers at 2:27 PM
KOSDAQ's buy-side circuit breaker activated at 2:27 PM as the index widened gains in the afternoon session. This marked the 14th buy-side circuit breaker in KOSDAQ this year, and the 24th overall including sell-side triggers. All KOSDAQ sectors closed higher, with bio stocks showing particular strength. Alteogen, the market-cap leader among bio companies, surged 14.37%. Pharmaresearch rose 11.63%, while Legochem Biosciences and Samchundang Pharmaceutical gained over 8%.
Market Performance Across Sectors
All KOSPI sectors finished higher. Construction jumped 10.47%, while IT and metals rose over 7%. Beyond semiconductors, secondary battery stocks showed strength with LG Energy Solution up 8.41% and Samsung SDI climbing 11.46%. The won-dollar exchange rate closed the weekly session at 1466.8 won, down 13.3 won from the previous trading day's close.
Analysts Warn of Potential Foreign Selling Pressure
Byun Jun-ho, researcher at IBK Investment & Securities, advised that "foreign re-selling pressure could occur when KOSPI rebounds," recommending that investors "need to establish market strategies with this in mind." He suggested a buying strategy in the 6000-point range for KOSPI, and a gradual selling strategy in the 8000-point range while monitoring whether foreign investors resume selling. Upcoming variables include earnings announcements from Microsoft, Amazon, and Meta, the July 28th FOMC meeting, and Middle East conflict uncertainties.
FAQ
What caused KOSPI to reclaim 7000 points on the 23rd?
Alphabet's Q2 earnings showing 82% year-over-year cloud revenue growth and 100% CAPEX expansion revived AI infrastructure demand expectations, triggering foreign investor buying of 2.148 trillion won in Korean semiconductor stocks including SK Hynix and Samsung Electronics.
How much did foreign investors buy in SK Hynix during the rally?
Foreign investors purchased 2.756 trillion won in SK Hynix and 1.7286 trillion won in Samsung Electronics on the 23rd, as part of a four-day cumulative buying total of 5.5841 trillion won from the 20th to the 23rd.
