KOSPI renews all-time record high
Analysts expect KOSPI to soar to 3,500 later this year
The benchmark KOSPI closed at a new record high after just six trading sessions Thursday, up 0.3 percent to finish at 3,286.10 points, as investor sentiment was lifted by the Nasdaq which also finished at a record high.
The index got off to a bullish start, rising to a record intra-day high of 3,292.27 points at 11:44 a.m.
Institutional investors net purchased 139.7 billion won ($123 million) worth of shares, while retail and foreign investors were net sellers of a respective 46.5 billion won and 105.2 billion won worth of stock.
“The KOSPI index renewed its record high, as semiconductors as well as automobile stocks particularly logged bullish moves, which are linked to surges by similar sector stocks in the U.S. market, including Micron and Tesla on the Nasdaq on Wednesday,” Shinhan Financial Investment’s research report stated about KOSPI’s upward move on Thursday.
Mirae Asset Securities researcher Seo Sang-young also attributed the performance to global investors’ increased preference for risky assets, adding that bullish moves of U.S. semiconductor and electric vehicle shares positively affected related stock on the KOSPI.
Blue-chip semiconductor stocks performed well, including Samsung Electronics, which finished at 81,200 won, up 1.37 percent from the previous session. The second largest company in terms of market cap, SK Hynix, also closed up 1.61 percent. Hwashin, an auto parts supplier to Hyundai Motor, rose 17.42 percent on news of the automaker’s strong performance in Southeast Asia. Kia shares closed up 0.44 percent at 90,600 won, while Korea Electric Power Corporation also closed up 0.81 percent at 24,750 won.
By sector, steel and metals logged the highest increase of 3.01 percent at the close, followed by banking shares that rose 1.41 percent, and electronics at 1.4 percent.
Experts expect the country’s stock market to continue moving upward for the time being based on solid export performances by big corporations.
“The core driving force behind the Korean stock markets’ recent bullish moves is enhanced corporate profits as well as the increased level of their performance forecast for the latter quarters of the year,” Stephen Lee, an economist at Meritz Securities Korea, told The Korea Times.
“While nobody can be sure about what the ultimate fair value level of the KOSPI is, we expect it to hit as high as 3,500 points later this year. We do not think that is the end of the bullish run, because a global preference for risky assets seems to be sticking around for a longer period than expected,” the economist added, saying a potential increase in key interest rates by the authorities will not significantly impact the stock markets’ performances.