South Korea’s KOSPI index closed at a record high on Friday, as seen on a board at the dealing room of Woori Bank in Seoul. Photo by Yonhap
South Korean stocks closed a tad higher Friday to extend their winning streak to a fourth session to a new record high as investors scooped of artificial intelligence (AI) shares despite concerns over a bubble. The local currency fell against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) inched up 3.11 points, or 0.06 percent, to close at 5,224.3, after rising as high as to 5,321.68.
Trade volume was heavy at 852 million shares worth 34.7 trillion won (US$24.1 billion). Losers outnumbered winners 602 to 278.
Individuals bought a net 2.2 trillion won, while foreigners sold a net 1.9 trillion won. Institutions sold a net 425 billion won.
Investors continued to purchase tech shares despite concerns over a bubble, as their performance has already been proven for robust earnings amid the AI cycle.
“For the time being, AI hardware and software companies need to overcome concerns over their profitability,” Han Ji-young, a researcher at Kiwoom Securities, said.
“During the period, the market’s preference for chipmakers that sell memory products to such companies will remain strong,” Han added.
The market advance was limited after U.S. President Donald Trump vowed to raise “reciprocal” tariffs and auto duties on South Korea back to 25 percent this week.
Top-cap Samsung Electronics edged down 0.12 percent to 160,500 won, while SK hynix set a fresh high at 909,000 won, up 5.57 percent.
Brokerage houses closed bullish amid the market rally, with Mirae Asset Securities rising 4.65 percent to 42,750 won and Kiwoom Securities increasing 4.11 percent to 443,500 won.
Top mobile carrier SK Telecom rose 4.32 percent to 72,500 won on the back of improved business outlook, and its rival KT added 1.43 percent to 56,900 won.
Samsung SDI rose 0.52 percent as the company said it has won a battery supply contract without disclosing details, with the deal widely believed to be related to Tesla Inc.’s energy storage system business.
The Korean won was quoted at 1,439.5 won against the U.S. dollar at 3:30 p.m., down 13.2 won from the previous session’s close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 3.2 basis points to 3.138 percent, and the return on the benchmark five-year government bonds added 4.1 basis points to 3.436 percent.
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