South Korea’s stock market is showing little sign of slowing down.
The Kospi extended its winning streak to a fourth straight session on May 8, ending just shy of the 7,500 mark as relentless buying in artificial intelligence-linked semiconductor stocks continued to outweigh fears surrounding renewed Middle East tensions.
The benchmark index closed at 7,498 points, up 0.11%, after staging a sharp turnaround from an early 1.82% drop sparked by overnight clashes involving US and Iranian forces. Investor nerves later eased after US President Donald Trump said the ceasefire between both sides remained in place, helping risk appetite recover across Asian markets.
The rally has been nothing short of historic for South Korea’s equities market. Earlier this week, the Kospi surged past the 7,000 level for the first time ever before briefly crossing 7,500 during intraday trading on Wednesday and again on Friday.
Driving much of the momentum is the ongoing global rush into AI-related semiconductor plays. SK hynix climbed another 1.93% to close at a record 1.686 million won, while Hyundai Motor jumped 7.17% on optimism tied to robotics and automation growth themes. Samsung Electronics slipped 1.1% as investors rotated into higher-growth counters.
Retail investors continued to dominate trading activity, purchasing a net 3.97 trillion won (US$2.68 billion) worth of shares on May 8 alone. Institutional funds also remained supportive, while foreign investors extended their selling streak after offloading more than 12 trillion won across the previous two sessions.
Brokerages believe the rally could still have room to run.
NH Investment & Securities expects the Kospi to trade between 6,900 and 7,800 this week, supported by stronger earnings revisions particularly from semiconductor companies. The brokerage estimates semiconductor earnings will surge 252% this year to 481.3 trillion won.
Meanwhile, Daishin Securities said the market’s valuation remains relatively undemanding despite the record-breaking run, suggesting the Kospi could potentially climb into the upper-8,000 range if earnings momentum continues.
Investors are now turning their attention to upcoming US inflation data and the May 14 to May 15 US-China summit, both of which could shape global market sentiment and determine whether the Kospi’s AI-driven rally still has further fuel left in the tank.
