KOSPI breaches the 3,300 level intraday for the first time in 4 years and 2 months… Expectations for tax reform [Comprehensive]

KOSDAQ also hits a year-to-date high

On the 10th, the KOSPI rose more than 1% intraday, breaking the 3,300 level and recording a year-to-date high. This is interpreted as the result of a combination of the upbeat U.S. stock market and expectations for a relaxation of the major shareholder threshold for capital gains tax.

As of 9:45 a.m. that day, the KOSPI stood at 3293.52, up 33.47 points (1.03%) from the previous trading day, marking its seventh consecutive day of gains. The index started up 0.37% and widened its gain to 1.42%, breaking the 3,300 level for the first time in 4 years and 2 months. Intraday it reached 3306.34, surpassing the historical closing high (3305.21) recorded on July 6, 2021.

Combined buying by foreign and institutional investors is leading the index rise. On the Korea Exchange, foreigners and institutions bought 331.4 billion won and 242.7 billion won worth of stocks, respectively. Meanwhile, individual investors, engaging in profit-taking, sold 574 billion won worth.

Overnight, U.S. markets appear to have hit record highs on expectations of the central bank (Fed) cutting its benchmark interest rate. The Dow Jones Industrial Average rose 0.43%, while the S&P 500 and the Nasdaq Composite rose 0.27% and 0.37%, respectively.

In addition, expectations seem to be reflected that President Lee Jae-myung will announce at his 100-day inauguration press conference scheduled for the 11th that the major shareholder threshold for capital gains tax will be kept at the current 5 billion won rather than the original plan of 1 billion won.

Most of the top market-cap KOSPI stocks are rising. Samsung Electronics, SK Hynix, Hanwha Aerospace, Hyundai Motor, KB Financial Group, Kia, Doosan Enerbility, Celltrion, Naver, Hanwha Ocean, and Shinhan Financial Group are among those up.

By sector, banks, electrical equipment, securities, semiconductors, auto parts, insurance, machinery, automobiles, and shipbuilding are rising.

At the same time, the KOSDAQ stood at 830.07, up 5.25 points (0.64%) from the previous trading day. The KOSDAQ also hit a year-to-date high. In the KOSDAQ market, individuals and institutions bought 10.3 billion won and 8 billion won worth, respectively, while foreigners sold 14.1 billion won worth.

Among the KOSDAQ market-cap leaders, Alteogen, PharmaResearch, Ligachem Bio, Rainbow Robotics, HLB, Samchundang Pharmaceutical, and RINO Industrial are rising, while EcoPro BM, Peptron, EcoPro, ABL Bio, and Hugel are falling.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com