South Korea‘s main bourse-based index reached another all-time high Monday, following abated global uncertainties after French centrist Emmanuel Macron was elected president, as well as rising expectations of the presidential transition in South Korea.
The benchmark Korea Composite Stock Price Index closed at 2,292.76, up 2.3 percent, or 51.52 points, Monday, breaking the record high set in the previous trading day of Thursday at 2,241.24.
The Kospi hovered around 2,254 points from late morning trade, until it began to make a drastic upward turn at around 1:30 p.m.
Foreign investors’ strong buying powered the rally. The volume of buying reached 475.6 billion won ($420.4 million). Institutional investors bought 76 billion won and individual investors sold 591.1 billion won in total.
Market giant Samsung Electronics continued its nine-trading day winning streak, closing at 2,351,000 won, up 75,000 won, or 3.3 percent.
Cosmetics stocks also surged. Amorepacific jumped 6.39 percent to 333,000 won. LG Household & Health Care climbed 3.28 percent to 946,000 won. The brand Its Skin also rose 2.29 percent to 49,200 won.
Gainers outnumbered losers 556 to 235, while two more listed companies’ stocks hit the price ceiling.
This came in light of world market rallies after Macron clinched a resounding victory against far-right and anti-European Union Marine Le Pen in the French presidential election Sunday.
“The lowered possibility of the eurozone ruckus will invite investors to high-risk assets in (the) global financial market.” wrote Ma Ju-ok, an analyst at Hanwha Investment & Securities, in a Monday report.
Analysts also pointed to growing anticipation for a presidential transition Tuesday after the election. Liberal candidate Moon Jae-in was standing atop polls.
“The election is likely to lift consumer sentiment and anticipation for the new administration,” said analyst Lee Sang-hun at Hi Investment & Securities in a Monday report.
“A new president means a new phase of the Korea-China relationship,” said Lee Sun-hwa of Eugene Investment & Securities. “This pushed up cosmetics stock prices.”
The local currency strengthened by 5.1 won, or 0.45 percent, to close at 1,131.4 won against the dollar Monday.
By Son Ji-hyoung (firstname.lastname@example.org)