Summary
- The Kospi closed at a record 7,981.41 for a second straight all-time closing high, bringing 8,000 within reach.
- Retail investors and institutions were net buyers on both the Kospi and Kosdaq, while foreign investors were net sellers in both markets.
- KB Securities raised its target for this year’s Kospi to 10,500 and forecast sharp increases in operating profit for the Kospi and for Samsung Electronics and SK Hynix.
Forecast Trend Report by Period
Kosdaq also closes higher
South Korea’s Kospi set a record closing high for a second straight session on May 14, ending within reach of the 8,000 level.
The benchmark index rose 137.40 points, or 1.75%, to 7,981.41. It briefly turned lower during the session as inflation concerns resurfaced in the US, but bargain buying lifted the index back into positive territory.
On the main board, retail and institutional investors were net buyers of 1.835 trillion won and 193 billion won, respectively. Foreign investors were net sellers of 2.144 trillion won.
The market’s two semiconductor bellwethers moved in opposite directions. Samsung Electronics gained 12,000 won, or 4.23%, to close at 296,000 won after rising as high as 299,500 won intraday, just shy of the 300,000-won mark. SK Hynix fell 6,000 won, or 0.30%, to 1.97 million won.
Samsung C&T rose 3.15%, LG Energy Solution added 2.79% and Hyundai Motor gained 0.28%. HD Hyundai Heavy Industries fell 8.46%, Doosan Enerbility dropped 2.42%, SK Square lost 1.60%, Kia slipped 0.78% and Samsung Electro-Mechanics declined 0.49%.
KB Securities became the first South Korean brokerage to present a year-end Kospi target of 10,000. In a report released on May 14, it raised its target for this year to 10,500 from 7,500, a 40% increase.
KB Securities projected operating profit for Kospi-listed companies to triple from a year earlier to 919 trillion won this year, forecasting the strongest earnings improvement among global stock markets. It also forecast combined operating profit at Samsung Electronics and SK Hynix to jump to 630 trillion won this year from 91 trillion won last year, before rising to 906 trillion won next year.
The Kosdaq also finished higher, rising 14.16 points, or 1.20%, to 1,191.09. On the Kosdaq, retail and institutional investors were net buyers of 92 billion won and 59 billion won, respectively, while foreign investors were net sellers of 136 billion won.
The won-dollar exchange rate edged up. In Seoul’s foreign-exchange market, the won closed the daytime session at 1,491.0 per dollar, up 0.4 won from the previous day.
Lee Su, Hankyung.com reporter 2su@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.
