South Korean stocks achieved a historic milestone, surpassing the 5,500-point mark for the first time ever on Thursday, fueled by significant gains in leading technology shares. The Korean won also strengthened against the US dollar.
The Korea Composite Stock Price Index (KOSPI), the country’s benchmark index, soared by 167.78 points, or 3.13 percent, to close at an unprecedented high of 5,522.27.
This marks the first instance of the KOSPI exceeding the 5,500-point barrier.
Trading volume was robust, reaching 739.2 million shares valued at 31.8 trillion won ($22 billion). Advancing stocks outnumbered declining ones by a ratio of 616 to 272.
Foreign investors and institutions were net buyers, acquiring 3 trillion won and 1.37 trillion won worth of shares, respectively. Meanwhile, retail investors engaged in profit-taking, selling a combined 4.45 trillion won.
“The KOSPI’s achievement occurred despite the mixed performance observed in global stock markets, which were navigating uncertainties stemming from the anticipated change in the Federal Reserve leadership and the release of the US jobs report,” noted Lee Kyoung-min, an analyst at Daishin Securities.
“The KOSPI successfully absorbed these uncertainties and moved upwards, driven by the strong fundamentals of the market and the upward trajectory of large-cap stocks,” he added.
Overnight, major US indices experienced slight declines as investors reacted with mixed sentiments to the stronger-than-expected US jobs report. While the report raised hopes for a resilient US economy, it also sparked concerns that the Federal Reserve might maintain its current interest rates.
According to Lee, the rally on Thursday was spearheaded by semiconductor and financial stocks, with secondary battery and food and beverage sectors, which had previously lagged, also demonstrating robust performance.
Semiconductor giant Samsung Electronics surged by 6.44 percent to 178,600 won, while its competitor SK hynix increased by 3.26 percent to 888,000 won. Hanmi Semiconductor witnessed a remarkable surge of 9.97 percent, reaching 209,500 won.
Leading battery manufacturer LG Energy Solution climbed by 4.59 percent to 410,000 won, and artificial intelligence investment firm SK Square jumped by 7.14 percent to 570,000 won.
In the financial sector, KB Financial rose by 2.43 percent to 168,500 won, and Shinhan Financial escalated by 5.05 percent to 106,000 won.
Automakers presented a mixed picture, with Hyundai Motor declining by 0.59 percent to 506,000 won, while Kia gained 2.78 percent to 166,300 won.
Home appliance manufacturer LG Electronics experienced a decline of 5.08 percent to 121,400 won, following a rally the previous day.
The Korean won was quoted at 1,440.2 won against the US dollar at 3:30 p.m., appreciating by 9.9 won from the previous trading session.
