S. Korean stocks rally past 5,800 for first time
South Korean stocks surged past the 5,800 mark for the first time on Friday, ending at a new record high amid optimism that forthcoming investor-friendly policies will help boost market valuations.
The local currency weakened against the U.S. dollar, News.Az reports, citing Yonhap.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 131.28 points, or 2.31%, to finish at an all-time high of 5,803.53.
RECOMMENDED STORIES
Trading volume was heavy, reaching 1.73 billion shares valued at 32.74 trillion won (US$22.64 billion). Advancers outnumbered decliners 543 to 340.
Institutional investors were net buyers, purchasing 1.61 trillion won worth of shares. In contrast, foreign and retail investors booked profits, selling a net 745.06 billion won and 986.12 billion won, respectively.
Following a three-day Lunar New Year holiday, the index had already surged past the 5,600 level on Thursday, with analysts citing pent-up demand accumulated during the break.
The KOSPI has been on a strong upward trend, crossing the 5,000 mark for the first time on Jan. 27 and surpassing 5,500 on Feb. 12.
Kim Seok-hwan, an analyst at Mirae Asset Securities, noted that geopolitical tensions have intensified after U.S. President Donald Trump signaled the possibility of military action against Iran following a 10-day negotiation deadline. Some analysts, he said, do not rule out the risk of broader conflict.
Despite these concerns, investors remain hopeful that government and corporate measures aimed at enhancing shareholder returns and overall market value will continue to support the rally.
Meanwhile, U.S. stocks declined Thursday amid worries over U.S.-Iran tensions and risks tied to heavy investments in artificial intelligence, after alternative asset manager Blue Owl Capital announced plans 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.
By Nijat Babayev
Similar news
