The KOSPI rose 1.05% to close at 2,656.33 on the 26th due to the announcement of positive guidance f.. – 매일경제
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The KOSPI rose 1.05% to close at 2,656.33 on the 26th due to the announcement of positive guidance from big U.S. tech stocks and the reignition of value-related stocks. As the U.S. earnings season begins, the stock prices of large Korean semiconductor stocks are linked to the U.S. stock market and the announcement of guidance, leading to a volatile market in which the KOSPI continues to fluctuate day after day.
The KOSPI rose 1.95% on the 18th as geopolitical risks in the Middle East subsided and foreign purchases re-inflowed due to falling U.S. bond yields. However, as U.S. semiconductor stocks plunged due to TSMC’s downward revision of guidance, the KOSPI fell 1.63% to close the trading on the 19th.
Despite Nvidia’s 10% drop on the previous trading day, it rose on Deputy Prime Minister Choi Sang-mok’s remarks on tax reform and rose 2.01% on the 24th on the announcement of positive guidance from U.S. chipmaker Texas Instruments. Then, the KOSPI plunged 1.76% on the 25th due to a 15% drop in after-hours trading, saying Meta would increase investment costs despite its positive first-quarter performance.
However, after Microsoft announced an earnings surprise after the market closed on the 25th (local time) and Google holding company Alphabet rose by 4.43% and 11.48% in after-hours trading, AI semiconductor stocks revived and the KOSPI succeeded in rebounding.
Alphabet reported EPS of $1.89, which missed market estimates of $1.51. Revenue came in at $80.54 billion, slightly above estimates of $78.59 billion. This is a 15% increase from $69.79 billion a year earlier.
After announcing the first dividend payment in 20 years since its establishment, the after-hours stock price soared.
Microsoft reported earnings per share of $2.94 and revenue of $6.186 billion. It has exceeded market expectations of $2.82 and $6.08 billion, respectively. Sales rose 17% year-on-year, and net profit rose to $21.94 billion from $18.33 billion a year earlier.
The growth was driven by the cloud sector. The intelligent cloud sector, which includes Azure Public Cloud, increased by 21%. Artificial intelligence-related parts of Azure’s services increased from 6 percentage points in the previous quarter to 7 percentage points. Microsoft explained that this is due to the increase in OpenAI ChatGPT and Azure AI services.
On top of that, the Philadelphia Semiconductor Index rose 1.86% on the 25th (local time), with Nvidia shares rising 3.7%, and the domestic KRX semiconductor index also rose 1.7% on the 26th. Meta, which issued guidance the previous day, gave the market concerns that it would be difficult for big tech stocks to continue their burden of AI investment due to the cost burden, while other big tech companies expected that AI investment would already lead to steep monetization and continue large-scale capital expenditures (Capex).
SK Hynix rose 4.22% on the same day, as well as the rise of other small managers (materials, parts, and equipment). Large KOSDAQ stocks Reno Industrial rose 1 percent and Solbrain rose 2.95 percent. Iotechnics, a high-bandwidth memory (HBM) stock, rose 5.04 percent.
In the meantime, the earnings announcements of major global semiconductor stocks and big tech companies are almost completed except for Apple and Amazon, and the events that could affect the KOSPI are expected to be interest rate and monetary policy events, not performance, before the Nvidia earnings announcement on the 22nd of next month.
Lee Woong-chan, a researcher at Hi Investment & Securities, said, “At the beginning of the second quarter, the U.S. economy is likely to fall due to the impact of rising interest rates and sluggish purchasing managers’ index (PMI) indicators, but monetary policy will be determined by how low oil prices and prices, which rose in the first quarter will fall. AI and semiconductors can differentiate their stock prices based on their sales visibility and vision presented after they were enthusiastic about all companies under the theme.”
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