SK Hynix Hits Historic High as BlackRock Returns; KOSPI Rockets Past 5,800

TL;DR

• SK Hynix shares surged over 6% to reach a record intraday high of 950,000 KRW ($678) after BlackRock disclosed a major stake.
• The KOSPI benchmark rose 2.31% in a single day, shattering the 5,800 level just 24 hours after crossing 5,600.
• Global institutional confidence in the AI-driven semiconductor 'Super Cycle' is overshadowing valuation concerns.

What Happened

On February 20, the Korean market witnessed a historic rally led by semiconductor giant SK Hynix (000660.KS). The company's stock price soared 6.15% to close at 949,000 KRW (approx. $678), briefly touching the 950,000 KRW mark during intraday trading. This rally was fueled by the news that BlackRock, the world's largest asset manager, has increased its stake in SK Hynix to over 5% for the first time in nearly eight years.

The surge in SK Hynix had a massive gravitational pull on the benchmark KOSPI, which jumped 131.28 points (2.31%) to close at 5,808.53. Notably, SK Hynix alone contributed 45.15 points to the index's gain. While retail and foreign investors were net sellers of cash equities, institutional investors—driven by ETF-related inflows—poured 1.61 trillion KRW (approx. $1.15 billion) into the market. Furthermore, foreign investors showed a bullish outlook by net purchasing 1.21 trillion KRW (approx. $864 million) in KOSPI futures.

Korea Market Context

For international investors, two specific dynamics are at play here. First is the '5% Disclosure Rule' under the Financial Investment Services and Capital Markets Act. Any investor acquiring more than 5% of a listed company's outstanding shares must disclose it within five business days. BlackRock’s return as a 'major shareholder' (holding 5.01%) is a powerful signal to the market, as they last held such a stake in May 2018.

Second, the KOSPI's recent 'unstoppable' rally—rising from 5,000 to 5,800 in less than a month—is highly concentrated. The Korean market is currently experiencing a divergence where semiconductor earnings revisions are driving the index, while other sectors lag. Analysts note that the Price-to-Earnings Ratio (PER) for the semiconductor sector remains lower than during the COVID-19 lows, suggesting that despite the price surge, the 'E' (Earnings) is growing even faster than the 'P' (Price).

Investment Implications

The return of global 'Big Hands' like BlackRock suggests that the AI-led memory boom is viewed as a structural shift rather than a temporary spike. While the KOSDAQ fell 0.58% due to profit-taking in large caps, the KOSPI’s momentum remains tethered to HBM (High Bandwidth Memory) demand. Investors should watch for 'rotation' within the KOSPI; while SK Hynix led this leg of the rally, market eyes are on whether Samsung Electronics (005930.KS) will follow suit to reach the projected 290,000 KRW level.

Stocks Mentioned

• SK Hynix (000660.KS)
• Samsung Electronics (005930.KS)
• Hanwha Aerospace (012450.KS)
• Doosan Enerbility (034020.KS)