Summary
- It reported that the KOSPI surpassed the 3,700 mark for the first time in history and reached a record high thanks to net buying by foreigners and institutions.
- It said that large-cap stocks such as Samsung Electronics and SK Hynix hit record highs, and securities firms raised the KOSPI's upper forecast to the 3,750 level.
- It reported that secondary battery stocks surged in the KOSDAQ market and individual investors' net buying stood out.
The KOSPI index pierced the 3,700 mark and once again recorded an all-time high. On the day, Samsung Electronics and SK Hynix, the market leaders and the two major semiconductor stocks, both posted record highs.
According to the Korea Exchange on the 16th, the KOSPI closed at 3,748.37, up 91.09 points (2.49%) from the previous day. After surpassing the 3,700 mark for the first time ever, it widened gains during the session and succeeded in anchoring at a high.
Buying by foreigners and institutions in tandem firmly supported the index. Foreigners and institutions net bought 652.8 billion won and 741.8 billion won, respectively. Individual investors alone were net sellers by 1.3937 trillion won.
On the securities market, Samsung Electronics' stock ended trading at 97,700 won, up 2.84%. It broke the intraday high of 96,800 won on January 11, 2021, for the first time in four years and nine months. SK Hynix also surged 7.1% to close at 452,500 won, recording an all-time high.
Hyundai Motor and Kia jumped about 8% and 7%, respectively, on hopes of a Korea-U.S. tariff negotiation settlement. Tariff uncertainty had long weighed on the auto industry.
With large-cap stocks leading the way, the KOSPI has continued a daily record rally. Securities firms have also been continuously raising their upper-end forecasts to match the pace of the index's rise.
On the day, Korea Investment & Securities issued a report and significantly raised its one-month upper KOSPI forecast from the previous 3,500 level to the 3,750 level. Kim Dae-jun, a researcher at the firm, said, "We need to view the Korean stock market more optimistically," adding, "This is part of the journey toward a KOSPI 4,000 era."
Meanwhile, SK's stock plunged about 5%. This followed the Supreme Court's decision that day to overturn and remand the divorce ruling between SK Group Chairman Chey Tae-won and Art Center Nabi director Noh So-young. There had been a possibility of a management dispute if a large-scale division of assets were made to Director Noh, but with that possibility reduced, investor sentiment is thought to have been dampened.
Meanwhile, the KOSDAQ closed at 865.41, up 0.69 points (0.08%).
Individual investors net bought 348.4 billion won, while foreigners and institutions were net sellers by 96.9 billion won and 236.2 billion won, respectively.
In the KOSDAQ market, secondary battery stocks showed a notable sharp rise. EcoPro BM and EcoPro each surged more than 14%.
In the Seoul foreign exchange market, the won-dollar exchange rate stood at 1,417.9 won, down 3.4 won as of 3:30 p.m.
Shin Min-kyung, Hankyung.com reporter radio@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.
