SK Hynix Inc., the second-largest company by market capitalization on South Korea’s main exchange, experienced a significant surge on Friday following the disclosure of a 5% stake by BlackRock Inc., the world’s largest asset manager. This announcement propelled the Kospi index above the 5,800 mark for the first time, closing at 5,808.53.
The stock price of SK Hynix jumped by 6.2%, reaching 949,000 won (approximately $656.29). This new high surpassed the previous intraday peak of 931,000 won set on January 30, 2024. The increase followed a regulatory filing revealing that BlackRock holds 36,407,157 shares in the company, solidifying its stake in the semiconductor giant.
Kospi Index Sees Notable Gains
As SK Hynix rallied, the benchmark Kospi index climbed by 2.3%. Samsung Electro-Mechanics Co., which also reported a 5% stake from BlackRock, saw its shares rise by 5.3%. Samsung Electronics Co., the largest component of the index, edged up slightly by 0.1%, closing at 190,100 won.
The Kospi opened the day at 5,696.89, reflecting an initial 0.4% increase, and continued to gain momentum throughout the trading session. With the index now standing 3.3% away from the 6,000 level, investor confidence appears to be strong.
According to data from the Korea Exchange, institutional investors were net buyers of 1.61 trillion won, which offset the net sales of 986.1 billion won by retail investors and 743.0 billion won by foreign investors. Conversely, the junior Kosdaq index fell by 0.6%, closing at 1,154.00.
Market Trends and Sector Performance
Analysts attribute the Kospi’s rally to sustained inflows into large-cap stocks and the resilience of key export sectors, particularly semiconductor and defense companies. The defense sector saw significant gains as geopolitical tensions rose, with reports indicating that the United States may consider military options in response to stalled nuclear negotiations with Iran. Notable performers included Hanwha Aerospace Co., which rose by 8.1%, Hanwha Systems Co. with a 9.5% gain, and Hyundai Rotem Co., which added 4.8% to its stock price.
Lee Kyung-min, an analyst at Daishin Securities Co., noted that large passive fund inflows into the domestic market have persisted. He stated, “The Kospi was able to withstand global market uncertainty on the back of strong industrial competitiveness.”
In contrast to the Kospi’s performance, major Asian equity markets declined on the same day. US stocks also fell overnight due to concerns regarding credit conditions, which were exacerbated by a warning from President Donald Trump about possible military action against Iran. Additionally, private-equity firm Blue Owl Capital suspended investor redemptions in certain funds, raising further alarms in the financial sector.
The market’s dynamics highlight the impact of institutional investments and the performance of key industries on overall market sentiment. As South Korea’s economy navigates a complex global landscape, the resilience of its major corporations continues to draw attention from investors worldwide.
