[Edaily Reporter Kim Hyung-il ] After briefly surpassing the 7,000 mark early in the session, the KOSPI has given back some of its gains and is now trading in the 6,900 range. Major semiconductor stocks such as SamsungElectronics(005930)and SK hynix(000660) continue to perform strongly, while foreign investors are driving the index higher with net purchases exceeding 2 trillion won. Investor sentiment is also being bolstered by the fact that the U.S. July Producer Price Index (PPI) came in below market expectations, raising expectations that the benchmark interest rate will remain unchanged in September.

According to MP Doctor on the 14th, as of 2:00 p.m., the KOSPI stood at 6,937.86, up 124.52 points (1.83%) from the previous trading day. The index rose as high as 7,010.86 early in the session, breaking through the 7,000 mark, but subsequently pared its gains. There are 567 stocks rising and 303 falling, with more stocks on the rise.

In terms of supply and demand, foreign investors are leading the buying trend with net purchases of 2.0339 trillion won. In contrast, retail investors and institutions are net sellers of 1.1752 trillion won and 830.1 billion won, respectively.

The strength of large-cap stocks is particularly notable. KOSPI large-caps rose 1.49%, while mid-caps rose 1.24% and small-caps rose only 0.59%. SamsungElectronics is trading at 269,500 won, up 0.56%, and SK hynix is trading at 1,638,000 won, up 2.82%. SamsungElectronics(1P)(005935)is also up 2.61% to 192,700 won, while SamsungElectroMechanics(009150)and SKSQUARE(402340)are up 2.73% and 2.33%, respectively.

Among large-cap stocks outside the semiconductor sector, HyundaiMotor(005380)is surging 7.53%. Samsung Life Insurance(032830)is also showing a gain in the 3% range. In contrast, SAMSUNG BIOLOGICS(207940)is down 0.90%, and HANWHA AEROSPACE(012450)is down 2.19%.

By sector, telecommunications is up 5.63%, posting the highest gain. Transportation equipment and parts (3.00%), food, beverages, and tobacco (2.94%), and insurance (2.29%) are also showing strength. The electrical and electronics sector is up 1.51%, with major semiconductor stocks continuing their strong performance.

U.S. inflation data also supported risk appetite. The U.S. Producer Price Index (PPI) for July rose 4.7% year-over-year and remained flat month-over-month, falling short of market expectations. With both the Consumer Price Index (CPI) released the previous day and the PPI showing more stable-than-expected results, expectations that the Federal Reserve (Fed) will keep its benchmark interest rate unchanged in September have risen again.

In the U.S. stock market, SanDisk surged 13.7% after announcing plans to secure supply through long-term contracts and a policy to return 100% of free cash flow (FCF) to shareholders, while Micron also rose 4.2%. As investor sentiment in the memory sector improves, buying momentum continues for domestic semiconductor stocks as well.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, noted, “While the KOSPI is absorbing resistance at the 7,000 level, foreign investors have continued net buying of spot stocks for the fourth consecutive trading day.” He added, “While AI infrastructure-related stocks are showing mixed performance depending on the individual stock, memory stocks such as SamsungElectronics and SK hynix are showing strength.” He went on to explain, “HyundaiMotor is showing strength amid expectations for the establishment of a physical AI ecosystem, and rotational buying is also emerging in sectors such as shipbuilding, oil refining, and shipping.”

Indeed, a divergence is emerging among AI infrastructure-related stocks. While SamsungElectronics and SK hynix are rising, HYOSUNG HEAVY INDUSTRIES(298040), a power equipment stock, is down by around 3%. In contrast, HyundaiMotor is up by around 7% on expectations of building a physical AI ecosystem, and DOOSAN ENERBILITY(034020)and Hanwha Ocean(042660) are also rising, driven by expectations of supplying small modular reactor (SMR) equipment and expanded investment in the U.S. shipbuilding industry, respectively.

Oil refining and shipping stocks are also performing strongly. S-OilCorporation(010950)is up 3.62%, and PanOcean is up 2.31%. With Middle East negotiations at an impasse and U.S. economic sanctions pressure on Iran continuing, rotational buying appears to be flowing into related stocks.

The KOSDAQ has turned lower. The KOSDAQ is trading at 860.09, down 1.28 points (0.15%) from the previous trading day. There are 752 gainers and 894 losers, with more stocks declining than rising. Retail investors are net buyers of 352.4 billion won, while foreign and institutional investors are net sellers of 104.1 billion won and 249.9 billion won, respectively.

By sector, construction fell 1.88% and pharmaceuticals dropped 1.63%. Major blue-chip stocks are also trading lower. Alteogen Inc.(196170)is down 1.42%, ECOPRO BM CO., LTD.(247540)is down 0.52%, JUSUNG ENGINEERING Co.,Ltd.(036930)is down 2.57%, and WONIK IPS Co.,Ltd.(240810)is down 4.67%. In contrast, EO Technics Co., Ltd.(039030)is up 4.76%.