The Korea Composite Stock Price Index (KOSPI), shown on a screen in the trading room at Hana Bank in Seoul, topped a record-high 5,800 on Friday. Photo by Yonhap
South Korean stocks topped the 5,800-point mark for the first time Friday to end at a fresh record high amid expectations that upcoming investor-friendly measures will help lift market valuations. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 131.28 points, or 2.31 percent, to close at an all-time high of 5,803.53.
Trade volume was heavy at 1.73 billion shares worth 32.74 trillion won (US$22.64 billion), with winners outnumbering losers 543 to 340.
Institutions scooped up a net 1.61 trillion won worth of shares, while foreign and retail investors sold a net 745.06 billion won and 986.12 billion won worth of shares, respectively, for profit-taking.
After a three-day Lunar New Year holiday break, the index surged Thursday to top the 5,600 level, with experts saying pent-up demand accumulated during the holiday continued to flow into the stock market.
The KOSPI has been on a bull run recently, surpassing the 5,000 mark for the first time ever on Jan. 27 and the 5,500 level on Feb. 12.
“Geopolitical tensions have heightened after U.S. President Donald Trump signaled the possibility of military action against Iran following a 10-day negotiation deadline, and some analysts suggest the risk of a full-scale conflict is not negligible,” Kim Seok-hwan, an analyst at Mirae Asset Securities, said.
“But investors have maintained expectations for a series of measures by the government and companies to boost shareholder returns and overall market valuations,” he added.
U.S. shares lost ground Thursday (U.S. time) amid concerns about the U.S.-Iran situation and risks linked to massive investments in artificial intelligence (AI), as the U.S. private market and alternative assets manager Blue Owl Capital announced it is going to tighten investor liquidity.
Most large-cap shares finished higher, with chip and defense shares leading the market advance.
Market bellwether Samsung Electronics edged up 0.05 percent to 190,100 won, and chip giant SK hynix surged 6.15 percent to 949,000 won.
Carmakers traded mixed. Top automaker Hyundai Motor went down 0.78 percent to 509,000 won, while its sister affiliate Kia soared 1.06 percent to 171,800 won.
Leading battery maker LG Energy Solution fell 0.5 percent to 401,500 won, but AI investment firm SK Square advanced 2.47 percent to 580,000 won.
Nuclear power plant builder Doosan Enerbility surged 5.18 percent to 103,500 won, and defense giant Hanwha Aerospace spiked 8.09 percent to 1,242,000 won.
Leading shipbuilder HD Hyundai Heavy jumped 4.88 percent to 602,000 won, and its rival Hanwha Ocean shot up 6.61 percent to 149,900 won.
Pharmaceutical giant Samsung Biologics went up 0.93 percent to 1,736,000 won, while Celltrion dipped 1.02 percent to 242,000 won.
Financials gathered ground. KB Financial added 1.38 percent to 168,800 won, and Shinhan Financial grew 1.69 percent to 102,000 won.
Samsung Life Insurance climbed 4.78 percent to 219,000 won, and Mirae Asset Securities rose 0.57 percent to 70,900 won.
The Korean won was quoted at 1,446.65 won against the U.S. dollar at 3:30 p.m., down 1.15 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 3.5 basis points to 3.143 percent, and the return on the benchmark five-year government bonds also shed 3.5 basis points to 3.391 percent.
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