South Korea’s stock market stayed bullish, with its benchmark Korea Composite Stock Price Index crossing the 2,200 mark for the first time in six years Wednesday, amid world market rallies and the earnings parade of local corporations.
The main bourse closed at 2,207.84 Wednesday, up 0.5 percent, or 10.99 points compared to the previous day. It surpassed the 2,200 mark for the first time after May 4, 2011, when the market ended at 2,201.69.
It opened at 2,202.37 Wednesday, up 5.52 points, or 0.25 percent compared to Tuesday, when it closed at 2,196.85. The stock market recorded its intraday high at 2,210.61 at around 3:20 p.m.
Trade volume stood at 392.6 million shares worth 5.23 trillion won ($4.65 billion). Foreign investors and institutional investors in total purchased 293.2 billion won worth stocks and 86.8 billion won worth stocks respectively, while individual investors in sum sold 373.5 billion won worth shares.
Gainers outnumbered losers 531 to 257.
The buoyancy came hours after world markets saw rallies. The Nasdaq rose 41.67 to 6,025.49, marking its first move above 6,000 points. Standard & Poor’s 500 index rose 14.46 points, or 0.6 percent, to 2,388.61, while the Dow Jones industrial average rose 232.23 points, or 1.1 percent, to 20,996.12.
Market bellwether Samsung Electronics hit another record-high stock price at 2,140,000 won Wednesday for the second straight day, up 0.23 percent compared to Tuesday at 2,135,000 won.
Many other local businesses saw prices soar after their earnings parade. The third-largest conglomerate SK Group’s subsidiaries, chipmaker SK hynix and oil refiner SK Innovation, ended at 53,700 won, up 2.48 percent, and 173,000 won, up 1.76 percent, respectively Wednesday.
The upshot came a day after they saw their first-quarter net profit surge 321.9 percent and 51.7 percent, respectively, from a year earlier.
Mobile carrier LG Display’s share price closed at 31,400 won, up 0.64 percent. On the previous day, its first-quarter earnings jumped tremendously, as its net profit reached 679.4 billion won, from 1.1 billion won the previous year.
“The market-sensitive stocks are likely to bounce back, as reflation loses momentum and market sentiment improves,” said Suh Jeong-hoon, a researcher at Samsung Securities.
Another expert noted the bullish move might be short-lived.
“The upward move is rather instantly backed by the earnings parade in the first quarter than the original appetite for Kospi,” said Lee Kyung-min, an analyst at Daishin Securities. “After the Kospi passes its peak, the foreign investors’ buying spree is likely to be on the wane.”
The first-tier stock market has continued its six straight trading days of increases since April 19, when it ended at 2,138.40.
By Son Ji-hyoung (firstname.lastname@example.org)