KOSPI closes above 5,500 for first time ever…foreigners net buy 3 trillion won

The KOSPI closed above the 5,500 mark for the first time ever on the 12th. On the day, it consecutively set new records by breaking through 5,400 and 5,500 for the first time.

According to the Korea Exchange, the KOSPI ended up 167.78 points (3.13%) from the previous session at 5,522.27.

The index opened at 5,425.39, up 70.90 points (1.32%) from the prior day, and sharply extended gains. Late in the session, it rose as high as 5,522.27.

Only retail investors were net buyers early on, but flows reversed during the session. Foreign investors and institutions net bought 3.015 trillion won and 1.3697 trillion won, respectively. Retail investors posted net selling of 4.4485 trillion won.

Lee Jae-won, a researcher at Shinhan Securities, said, “Foreigners and institutions have been net buyers of KOSPI cash equities for four consecutive sessions. They took the baton from retail flows that had supported the downside and drove the index to fresh highs,” adding that “Samsung Electronics was the main driver behind the day’s sharp rally.”

Overnight in New York, shares of U.S. chipmaker Micron surged nearly 10%, apparently boosting investor sentiment toward the semiconductor sector not only in the U.S. but also in Korea.

Samsung Electronics, the market heavyweight and sector bellwether, jumped 6.44% to close at 178,600 won, an all-time high on a closing basis. The stock climbed as high as 179,600 won intraday, probing the “180,000-won Samsung” level. SK hynix also gained 3.26% to end at 888,000 won.

The KOSDAQ rose 11.12 points (1%) to finish at 1,125.99.

Retail investors and institutions net bought 86 billion won and 68.5 billion won, respectively. Foreigners net sold 104.6 billion won.

Market heavyweight EcoPro rose 1.97% and EcoPro BM climbed 3.5%. Wonik IPS hit the daily upper limit near the close.

Earlier in the afternoon, financial authorities announced “delisting reform measures for the swift and strict removal of insolvent firms.” The key point is a sweeping tightening of delisting criteria for KOSDAQ-listed companies, including bringing so-called “penny stocks” with share prices below 1,000 won into the scope of delisting starting in July. The authorities said the aim is to clean up troubled firms listed on the KOSDAQ to create a healthier market.

In the Seoul foreign-exchange market, as of 3:30 p.m., the won-dollar exchange rate stood at 1,440.2 won, down 9.9 won.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com