SK Hynix Inc., the second-largest company by market value on South Korea’s main exchange, experienced a significant surge on March 15, 2024, following a disclosure from BlackRock Inc., the world’s largest asset manager. BlackRock announced it holds a 5% stake in the chipmaker, contributing to a rise in the Kospi index, which surpassed 5,800 for the first time.
The share price of SK Hynix climbed by 6.2%, reaching 949,000 won (approximately $656.29). This increase marked a new intraday high, surpassing the previous record of 931,000 won set on January 30. The surge was prompted by a regulatory filing revealing that BlackRock owns 36,407,157 shares in SK Hynix, confirming its 5% stake in the firm.
Kospi Index Reaches New Heights
As SK Hynix rallied, the benchmark Kospi index climbed 2.3% to close at 5,808.53. Samsung Electronics Co., the largest component of the market, saw a slight increase of 0.1%, closing at 190,100 won. The index opened at 5,696.89, demonstrating strong momentum throughout the trading session. It now stands within approximately 3.3% of the 6,000 level.
According to data from the Korea Exchange, institutional investors were net buyers, acquiring 1.61 trillion won. This activity offset the net sales of 986.1 billion won by retail investors and 743.0 billion won by foreign investors. Meanwhile, the junior Kosdaq index dipped by 0.6%, closing at 1,154.00.
Analysts have highlighted that the rally can be attributed to sustained inflows into large-cap stocks and resilience within key export sectors, particularly chipmakers and defense firms. As geopolitical tensions have escalated, defense shares saw notable gains, with Hanwha Aerospace Co. rising by 8.1%, Hanwha Systems Co. gaining 9.5%, and Hyundai Rotem Co. increasing by 4.8%.
Market Dynamics Amid Global Uncertainty
Lee Kyung-min, an analyst at Daishin Securities Co., emphasized the role of large passive fund inflows into the domestic market. He stated, “The Kospi was able to withstand global market uncertainty on the back of strong industrial competitiveness.” This positive sentiment in South Korea contrasts with other major Asian equity markets, which experienced declines on the same day.
Globally, US stocks also faced downward pressure, as President Donald Trump issued warnings regarding possible military action against Iran. Additionally, concerns regarding credit conditions were heightened by private-equity firm Blue Owl Capital’s decision to suspend investor redemptions in certain funds. Blue Owl has been a prominent investor in the artificial intelligence infrastructure sector, particularly in data center construction.
The dynamics of the market reflect a complex interplay between local investor sentiment and broader global economic factors. As the Kospi index continues to rise, the implications for South Korea’s economic landscape remain significant.
