What’s behind KOSPI’s rebound at start of 2025?

An digital signboard at Hana Financial institution in Seoul reveals the benchmark KOSPI rising 3.46 factors, or 0.14 p.c, from the earlier session to shut at 2,492.1 factors, Tuesday. Yonhap

Korean shares are shifting in an upward trajectory, after extending a shedding streak from 2024 and making a shaky begin to the New 12 months.

This pattern, in accordance with analysts on Tuesday, is pushed partly by beneficiaries of the bogus intelligence (AI) taking heart stage at CES 2025, the world’s largest tech commerce present operating from Tuesday to Friday in Las Vegas.

Analysts additionally attributed the bull market to the so-called „January impact,“ referring to a seasonal improve within the costs of firm shares through the first month of the 12 months.

The benchmark KOSPI prolonged a three-day profitable streak, Tuesday, rising 3.46 factors, or 0.14 p.c, from the earlier session to shut at 2,492.10 factors.

The general market advance has been led by chipmakers, primarily Samsung Electronics and its rival SK hynix. Each firms are taking part on the CES.

Samsung Electronics had been rising for 3 consecutive days, earlier than slipping by 0.89 p.c to 55,400 gained ($38.12), Tuesday.

SK hynix has been gaining for 2 straight days, earlier than dropping by 2.4 p.c to 195,000 gained, additionally on Tuesday.

The tech-heavy junior Kosdaq market prolonged beneficial properties for 4 days straight after it closed 0.33 factors, or 0.05 p.c, increased at 718.29 factors.

“The upward pattern of the Korean inventory market is attributable to progress prospects of the businesses taking part in CES,” NH Funding & Securities analyst Kim Younger-hwan stated. “The traders reckon that the Las Vegas occasion is the place these firms can present what they’re able to within the period of AI.”

Kim stated Nvidia CEO Jensen Huang’s keynote speech on the CES added investor curiosity towards AI-related shares.

The CEO outlined Nvidia’s AI ambitions for client and enterprise customers for the 12 months forward because the world’s main AI chip large.

Huang additionally launched a number of new software program applied sciences designed to assist practice humanoid robots and energy a wide range of AI purposes.

Requested whether or not the Korean shares can proceed to maneuver up after the CES, the NH Funding & Securities analyst deemed that the January impact “could assist maintain such momentum.”

Kang Dae-seok, a Yuanta Securities analyst, echoed that view.

“It seems that the KOSPI, no less than for January, is much from being one of many world’s worst performers,” the analyst stated.

The KOSPI completed 2024 by shedding 9.7 p.c from the earlier 12 months. The year-on-year loss was particularly extreme within the second half when it retreated 14 p.c. The market correspondingly was ranked twentieth amongst 21 main economies’ inventory exchanges.

Some market observers famous that whether or not Seoul shares can sustain their progress momentum this 12 months will depend upon international traders, who dominantly went on a promoting spree in 2024.