KOSPI rises on semiconductor strength, KOSDAQ dips on biotech weakness

South Korea's stock market experienced a divergence on August 12, with the KOSPI index climbing more than 2% while the KOSDAQ index fell over 1%. The KOSPI's upward trend was largely propelled by a strong showing from major semiconductor companies, including Samsung Electronics and SK Hynix, which saw significant gains.

Samsung Electronics' stock rose 3.97% to 249,000 won, and SK Hynix increased by 2.60% to 1,462,000 won. This rally in semiconductor giants, along with related stocks like SK Square and Samsung Electro-Mechanics, is linked to recent news from the U.S. market. Nvidia's announcement of a $500 billion AI infrastructure funding effort, in partnership with large financial firms, has reignited investor interest in semiconductor-related equities.

In contrast, the KOSDAQ index struggled, declining 1.54% to 844.66. The downturn was primarily driven by a slump in the biotechnology sector, which has previously been a key driver of the index. Major biotech stocks, such as AlteoGen, saw notable drops, contributing to the broader weakness across most sectors on the KOSDAQ.

Market activity showed foreign investors as net buyers of approximately 400 billion won on the KOSPI, while individual investors were net sellers of a similar amount. The KOSPI's rise was led by a few large-cap stocks, as the number of declining stocks (463) outnumbered advancing ones (372).