Summary
- Kospi closed at a record 6,388.47 despite uncertainty surrounding US-Iran talks.
- Goldman Sachs and JPMorgan projected further upside for the Kospi, with targets of 8,000 and 8,500, respectively.
- Foreign and institutional investors posted net buying of 1.7472 trillion won and 796 billion won, respectively, lifting the index with gains in semiconductors and battery shares.
Forecast Trend Report by Period
SK Hynix Closes Above 1.2 Million Won for the First Time
Goldman Sachs Sees Further Upside, Projects Kospi at 8,000 Within a Year
South Korea’s Kospi index closed at a record high on April 21, overcoming uncertainty surrounding a second round of talks between the US and Iran. Expectations for earnings upgrades, led by semiconductor companies, helped lift investor sentiment.
The benchmark Kospi rose 169.38 points, or 2.72%, to 6,388.47. That surpassed the previous record closing high of 6,307.27 set on Feb. 26.
The rally came despite tensions around negotiations to end the conflict involving the US and Iran, as investors focused on resilient earnings forecasts for listed companies.
Goldman Sachs wrote in a report the previous day that the Kospi could climb above 8,000 within the next year. The bank said Kospi earnings estimates could increase 220% this year and that the market still had room to rise, given that past peaks came at an average price-to-earnings ratio of 10 times.
JPMorgan set an even higher target of 8,500. It said the Kospi could first reach 7,000 on improving semiconductor earnings and climb as high as 8,500 if the chip sector enters a bull market.
Foreign and institutional investors drove the advance. Foreign investors were net buyers of 1.7472 trillion won on the Kospi, while institutions bought a net 796 billion won. Retail investors were net sellers of 2.3633 trillion won.
Most large-cap stocks advanced. Samsung Electronics and SK Hynix rose 2.1% and 4.97%, respectively, to 219,000 won and 1.224 million won. SK Hynix, which is set to report earnings on April 23, extended its rally and closed in the 1.2 million won range for the first time.
Samsung SDI surged 19.89% on a supply deal with Mercedes-Benz. LG Energy Solution, another battery stock, jumped 11.42% on hopes for an industry recovery.
The Kosdaq also rose for an eighth straight session. The index added 0.36% to 1,179.03. On the Kosdaq, retail investors were net buyers of 586.8 billion won, while foreign and institutional investors were net sellers of 392.2 billion won and 123.7 billion won, respectively.
Jusung Engineering hit the daily limit after brokerages said the company could benefit if the US restricts exports of equipment by Chinese companies.
The won strengthened against the dollar. In Seoul trading, the won closed at 1,468.5 per dollar, up 8.7 won from the previous session.
Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
