[Edaily Reporter Kim Hyung-il ] The KOSPI rose more than 2%, buoyed by massive net buying by foreign investors and strong performance from major semiconductor stocks such as SamsungElectronics(005930) and SK hynix(000660). After breaking through the 7,000 mark early in the session, the index gave back some of its gains but extended its gains again in the afternoon, closing in the high 6,900s. As the U.S. July Producer Price Index (PPI) came in below market expectations, raising hopes that the benchmark interest rate would remain unchanged in September, the strength of memory stocks such as SanDisk and Micron provided a tailwind for the domestic stock market.

According to MP Doctor on the 14th, the KOSPI closed at 6,977.94, up 164.60 points (2.42%) from the previous trading day. The index opened 2.68% higher at 6,995.67 and rose to 7,010.86 around 9:02 a.m., breaking through the 7,000 mark. It subsequently gave up some of its gains, falling back to the 6,800 level, but resumed its upward trend in the afternoon.

In terms of supply and demand, foreign investors led the index higher with net purchases of 3.0387 trillion won. In contrast, retail investors and institutions recorded net sales of 1.9819 trillion won and 1.03 trillion won, respectively.

The strength of large-cap stocks was particularly notable. KOSPI large-caps rose 2.48%, outperforming mid-caps (1.82%) and small-caps (1.39%). SamsungElectronics closed at 274,500 won, up 2.43%, regaining the 270,000-won level for the first time in 15 trading days since the 23rd of last month, while SK hynix also closed at 1,645,000 won, up 3.26%. SamsungElectronics(1P)(005935)rose 4.15%, SamsungElectroMechanics(009150)rose 3.66%, and SKSQUARE(402340)rose 3.31%. HyundaiMotor(005380)also surged 8.24%. In contrast, SAMSUNG BIOLOGICS(207940)fell 1.02%.

By sector, telecommunications posted the largest gain, rising 6.1%. Transportation equipment and parts (3.58%), insurance (3.47%), food, beverages, and tobacco (3.1%), and electrical and electronics (2.68%) also showed strength. A total of 677 KOSPI stocks rose, significantly outnumbering the 204 that fell.

The appetite for risk in the U.S. stock market had a positive impact on the domestic market. On the 13th (local time), the S&P 500 index closed at 7,798.99, up 0.65%, setting a new all-time high based on the closing price. The Nasdaq rose 0.81%, and the Dow Jones Industrial Average rose 0.13%.

The U.S. Producer Price Index (PPI) for July remained flat month-over-month, falling short of market expectations of a 0.2% increase, and the year-over-year growth rate also slowed to 4.7% from 5.5% in June. The July Consumer Price Index (CPI), released the previous day, also met market expectations, easing concerns about inflation. Consequently, market expectations grew that the Federal Reserve (Fed) would keep the benchmark interest rate unchanged in September.

Memory stocks also continued their upward trend. SanDisk surged by over 13%, and Micron rose by over 4%, improving investor sentiment across the semiconductor sector. In particular, expectations for the memory market were reignited as SanDisk announced plans to secure supply through long-term contracts and return 100% of its free cash flow (FCF) to shareholders.

Lim Jeong-eun, an analyst at KB Securities, said, “With U.S. July PPI coming in below expectations, easing inflation concerns, SanDisk’s strong medium- to long-term growth outlook drove the rise in semiconductor stocks,” adding, “In the domestic stock market as well, SamsungElectronics and SK hynix rose for the fourth consecutive trading day.” She continued, “With the proportion of rising stocks exceeding 71%, the concentration on specific stocks has eased compared to the previous day,” adding, “Foreign investors’ shift to net buying on the KOSPI has been instrumental in the recent market recovery.”

The KOSDAQ index rose early in the session, turned lower midway through the morning, and then rebounded. The KOSDAQ closed at 864.65, up 3.28 points (0.38%) from the previous trading day. There were 904 gainers, outnumbering the 741 decliners, and nine stocks hit their daily upper price limit.

On the KOSDAQ, ECOPRO CO., LTD(086520)rose 1.63%, ECOPRO BM CO., LTD.(247540)rose 1.92%, and EO Technics Co., Ltd.(039030)surged 6.74%. Rainbow Robotics(277810)also rose 0.80%. On the other hand, Alteogen Inc.(196170)fell 1.10%, WONIK IPS Co.,Ltd.(240810)dropped 2.83%, and ABL Bio Inc.(298380)declined 3.11%. By investor type, retail investors were net buyers of 315.2 billion won, while foreign and institutional investors were net sellers of 65.8 billion won and 253.0 billion won, respectively.