SK hynix extends rally with new intraday high
South Korea’s benchmark Kospi jumped back above 6,000 points as of closing Wednesday, backed by growing expectations that US-Iranian peace talks could resume soon. It even surpassed the 6,100 mark during trading.
The Kospi closed at 6,091.39, advancing 2.07 percent from the previous session. It marked the first time the index has finished above the 6,000 level since recent Middle East tensions dampened market sentiment from Feb. 27.
During the session, the index also reclaimed the 6,100 threshold, rising as high as 6,183.21. However, it pared some of those gains later in the day, ending just below the 6,100 mark.
Market heavyweight Samsung Electronics rose 2.18 percent to 211,000 won ($143), while SK hynix had climbed 2.99 percent to 1.13 million won.
Earlier in the session, SK hynix hit a fresh record high of 1.17 million won, extending its record-breaking rally from the previous session.
Hyundai Motor gained 3.36 percent to 508,000 won, while LG Energy Solution inched up 2 percent to 408,000 won.
Foreign buying lifted the index, with a net purchase of 551.4 billion won, while retail and institutional investors each offloaded a net 935 billion won and 22.2 billion won on the bourse.
While the rally pushed the total market capitalization of Kospi-listed firms back above the 5,000 trillion won threshold during trading, the combined market cap inched down to 4,995.51 trillion won as of daytime trading's close.
The main bourse’s market cap first exceeded 5,000 trillion won on Feb. 25, but fell sharply later that week following the US and Israel's strikes on Iran and had failed to climb back above the level.
Market analysts viewed that the Kospi has nearly returned to preconflict levels, similar to other key stock markets.
"South Korea and US stock markets experienced sharp declines of around 10 percent from their recent peaks when war-related concerns were at their peak last month," said Han Ji-young, an analyst at Kiwoom Securities.
"Since April, most markets have been recovering those losses, supported by growing expectations of a ceasefire," Han added, pointing out that the Kospi’s monthly gains have outpaced those of other markets this month.
The Kospi’s previous peak remains within reach. The previous intraday high was 6,347.41 points on Feb. 27, just before the outbreak of the war. On a closing basis, its high stands at 6,307.27 from the prior session.
Some even offered a rosy outlook, forecasting that the Kospi would regain momentum and reach 7,500 within this year.
"From April onward, foreign investors are expected to focus on earnings and fundamentals again, likely boosting interest in the Kospi," according to Kim Dong-won, an analyst at KB Securities.
"The Kospi is projected to emerge as an attractive investment destination for global investors as it enters an earnings upcycle led by the semiconductor sector. The year-end target of 7,500 is now seen as within reach," he added.
silverstar@heraldcorp.com
