[Edaily Reporter Kim Hyung-il ] The KOSPI surged by over 4% on the back of strong gains in semiconductor stocks such as SamsungElectronics(005930)and SK hynix(000660), triggering the buy-side circuit breaker. As foreign and institutional investors continue to make net purchases, buying momentum is concentrated on large-cap stocks, driving the index higher.

According to the Korea Exchange on the 12th, a buy-side sidecar was triggered on the KOSPI market at 11:57 a.m. that day. This was because the Mini KOSPI 200 futures rose from the reference price of 987.08 points to 1,037.76 points—a 5.13% increase—and this level was sustained for one minute. At the time of activation, the volume of program trading stood at a net buy of 590.2 billion won.

This marks the 47th time a sidecar has been triggered this year, with 24 sell-side sidecars and 23 buy-side sidecars activated. The KOSPI buy-side car is triggered when the price of the nearest-month futures contract—based on the KOSPI 200—with the highest trading volume on the previous trading day rises by 5% or more above the reference price and remains at that level for one minute; program trading buy orders are suspended for five minutes starting from the time of activation.

The KOSPI extended its gains starting in the morning. It opened at 6,438.50, up 92.97 points (1.47%) from the previous day, but as of 12:03 p.m., the KOSPI stood at 6,645.10, up 299.57 points (4.72%) from the previous trading day. There are 383 stocks up, 39 unchanged, and 488 down.

In terms of supply and demand, net buying by both foreign investors and institutions is notable. Foreign investors are net buyers of 1.401 trillion won, while institutions are net buyers of 741.9 billion won. Retail investors are net sellers of 1.9703 trillion won. Combined, the net buying by foreign investors and institutions totals 2.1429 trillion won.

Large-cap semiconductor stocks are driving the index higher. SamsungElectronics is trading at 258,000 won, up 7.72% from the previous trading day, and SK hynix is also up 7.86% at 1,537,000 won. Large-cap semiconductor-related stocks are showing strength, with SKSQUARE(402340)up 9.74% and SamsungElectroMechanics(009150)up 6.42%. Samsung Life Insurance(032830)is also up 5.35%. In contrast, SAMSUNG BIOLOGICS(207940)is down 2.42%.

By sector, the electrical and electronics sector is up 6.94%, showing the strongest gains. Manufacturing is up 5.34%, insurance is up 2.83%, and finance is up 2.37%. Non-metallic minerals are also up 6.1%, and distribution (3.28%), machinery and equipment (2.40%), and chemicals (1.61%) are also on the rise.

The rally is clearly centered on large-cap stocks. KOSPI large-caps rose 4.88%, while mid-caps rose only 0.30% and small-caps just 0.02%. With the KOSPI index surging by over 4%, large-cap stocks appear to be leading the gains.

In contrast, gains on the KOSDAQ were relatively limited. At the same time, the KOSDAQ was up 1.01 points (0.12%) at 858.85. There were 823 gainers, 73 stocks unchanged, and 825 decliners. JUSUNG ENGINEERING Co.,Ltd.(036930)Semiconductor equipment stocks are showing strength, with WONIK IPS Co.,Ltd.(240810)up 10.71%, EO Technics Co., Ltd.(039030)up 8.79%, and up 4.07%. In contrast, Alteogen Inc.(196170)is down 3.21%, and ABL Bio Inc.(298380)is down 2.58%.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, commented on today’s market, stating, “As foreign investors continue to make non-arbitrage program purchases, large-cap stocks—particularly semiconductor stocks—are showing strength.” He added, “CoreWeave and Supermicro performed strongly in after-hours trading following their earnings announcements,” explaining that expectations for demand in artificial intelligence (AI) infrastructure could have a positive impact on domestic related stocks, such as semiconductor companies.