South Korean stocks continued their upward trajectory on Thursday, closing at a fresh peak and extending their winning streak to three consecutive sessions. This surge was largely fueled by the latest earnings reports from major companies, particularly in the tech sector. The Korea Composite Stock Price Index (KOSPI) rose by 50.44 points, or 0.98%, to reach a record high of 5,221.25 points.
Despite a temporary dip in the morning session as investors locked in profits from tech giants like Samsung Electronics and SK hynix, the market quickly rebounded. The index’s strength was underpinned by a wave of buying activity from retail investors, who net purchased 1.6 trillion won. This positive sentiment outweighed the selling pressures from institutional and foreign investors, who offloaded 1.5 trillion won and 150.2 billion won, respectively.
Trade volume was heavy, with 689.9 million shares changing hands, worth a total of 35.4 trillion won (approximately US$24.8 billion). The market saw 577 stocks gain ground, while 286 stocks saw losses.
Key Sector Trends
One of the key observations from the market was a sectoral rotation, as investors shifted focus from major chipmakers to non-semiconductor sectors, and even explored the smaller KOSDAQ market. The KOSDAQ index, which represents smaller companies, has surged over 20% since December 30, with many investors seeking value in the secondary market.
In line with this, the South Korean government has pledged to support startups and early-stage businesses, encouraging public funds to actively invest in the KOSDAQ market.
Corporate Highlights
In the corporate sector, Samsung Electronics saw a slight dip of 1.05% to 160,700 won, while its rival SK hynix climbed 2.38% to a historic high of 861,000 won. Hyundai Motor, a leader in the automotive sector, surged 7.21% to 528,000 won, while Naver, the portal operator, gained 3.42% to close at 287,000 won. On the other hand, battery maker LG Energy Solution faced a 3.36% retreat, ending at 416,500 won.
Brokerage firms performed exceptionally well, capitalizing on the stock market’s bullish momentum. Mirae Asset Securities rose by 17.39% to 40,850 won, and Korea Investment Holdings added 9.38% to 221,500 won.
Currency and Bond Markets
The South Korean won experienced a decline, trading at 1,426.3 won against the U.S. dollar, a decrease of 3.8 won from the previous day’s close. Bond prices also saw a dip, with yields rising across various maturities. The yield on three-year Treasurys increased by 3.9 basis points to 3.106%, while the return on the five-year government bonds rose by 3.8 basis points to 3.395%.
