South Korea’s equity benchmark headed for a bull market as purchases by foreign investors helped boost shares of chipmakers and firms that are part of the electric-vehicle supply chain.
The Kospi rose 0.2%, taking its advance from a Sept. 30 low to 20%. Global funds have been net buyers of $9.9 billion in Kospi shares so far in 2023 after being sellers in each of the previous three years.
Heavyweight Samsung Electronics Co. has climbed nearly 40% since the end of September and is the biggest contributor to gains on the benchmark. Battery maker LG Energy Solution Ltd. has provided the second-biggest boost, followed by chipmaker SK Hynix Inc.
“Foreign investors’ active love for semiconductors is driving the latest rally,” said Seo Sang Young, a strategist at Mirae Asset Securities. “There are expectations the chip sector will improve significantly as ChatGPT and Bard and others fuel growth and investment in the artificial intelligence industry.”
