The Kospi and other market indicators are displayed on a screen at the Hana Bank dealing room in Jung-gu, Seoul, on Monday. The benchmark index closed up 65.13 points, or 0.97 percent, at 6,755.75. [Yonhap]
The Kospi and other market indicators are displayed on a screen at the Hana Bank dealing room in Jung-gu, Seoul, on Monday. The benchmark index closed up 65.13 points, or 0.97 percent, at 6,755.75. [Yonhap]

Expectations for expanded AI investment offset supply-demand pressure from the Shanghai listing of Chinese memory chip maker CXMT, allowing the Kospi to close higher Monday. The index surrendered most of its early gains amid heavy foreign selling during the session but recovered above the 6,750 level as retail and institutional buying stepped in.

The Kospi rose 65.13 points, or 0.97 percent, to close at 6,755.75, according to Korea Exchange. The index opened up 115.65 points, or 1.73 percent, at 6,806.27, but foreign selling intensified during the session and briefly pushed it into negative territory. Institutional and retail buying in the afternoon returned the index to positive territory.

Foreign investors posted net selling of 2.88 trillion won ($1.96 billion) on the Kospi market. Institutions and retail investors provided support, recording net purchases of 859.2 billion won and 1.98 trillion won, respectively.

Market analysts said Monday's session was shaped by two competing forces: optimism over AI investment expansion and uncertainty surrounding the CXMT listing. News of large-scale AI investment commitments and cooperation with global big-tech firms by South Korean companies at an AI summit held over the weekend in San Francisco bolstered investor sentiment. However, some analysts noted that funds flowing into domestic semiconductor stocks were partially diverted after CXMT debuted on the Shanghai exchange and surged more than fivefold from its offering price, vaulting to the top spot by market capitalization on the Chinese bourse.

"CXMT raised expectations by announcing plans to more than double its production capacity by 2030," said Lee Gyeong-min, an analyst at Daishin Securities. "The supply-demand volatility from the CXMT listing limited the upside momentum for domestic semiconductor stocks."

Most large-cap stocks finished higher. Samsung Electronics closed up 4,500 won, or 1.80 percent, at 254,000 won, while SK Hynix gained 57,000 won, or 3.24 percent, to end at 1.82 million won. Hyundai Motor rose 0.50 percent, LG Energy Solution gained 1.06 percent, and Samsung Biologics advanced 1.78 percent. Samsung Electro-Mechanics fell 0.08 percent, SK Square dropped 1.17 percent, and Samsung Life Insurance declined 2.04 percent.

IT service and software stocks led sector gains, reflecting AI investment optimism. Naver surged 17,500 won, or 8.43 percent, to close at 225,000 won after news that Nvidia would participate in a third-party allotment capital increase. Cosmetics and food and beverage stocks also rose on earnings expectations.

The Kosdaq closed up 16.64 points, or 2.22 percent, at 764.86. Foreign investors and institutions posted net selling of 129.5 billion won and 144 billion won, respectively, while retail investors recorded net purchases of 272.8 billion won.

Among top Kosdaq stocks by market capitalization, most finished in positive territory — Alteogen rose 3.83 percent, Ecopro gained 3.20 percent, Ecopro BM advanced 2.03 percent, Rainbow Robotics jumped 6.57 percent, Jusung Engineering climbed 6.31 percent, Leeno Industrial added 1.75 percent, Wonik IPS rose 5.47 percent, PSK gained 1.46 percent, and HLB edged up 0.48 percent.

Lee also noted that uncertainty persisted in the Middle East following Houthi rebel attacks on Aramco oil facilities in Yemen, but said a temporary halt to mutual strikes between the United States and Iran was a positive development. "Mediation efforts by neighboring countries raised hopes for negotiations, which pushed West Texas Intermediate futures below $85 per barrel and helped improve investor sentiment," he said.


hajun825@heraldcorp.com