Seoul stocks hit record high above 9,000 on chip rally

Seoul stocks surged more than 2 percent on Thursday, breaking through a historic milestone as the benchmark index surpassed the 9,000-point level for the first time ever, driven by strong gains in chipmakers.

The Korea Composite Stock Price Index (KOSPI) closed up 199.6 points, or 2.25 percent, at 9,063.84, after reaching an intraday high of 9,106.07, News.Az reports, citing Yonhap.

The index extended its winning streak to six consecutive sessions, supported by optimism in artificial intelligence (AI) and related technology sectors.

Trading activity was strong, with volume reaching 505.9 million shares worth 49.9 trillion won (US$32.7 billion). Foreign investors were net buyers, purchasing 1.3 trillion won, while retail and institutional investors combined were net sellers of 1.2 trillion won.

Declining stocks slightly outnumbered advancing ones, with 109 losers compared to 788 gainers.

The index moved against overnight declines on Wall Street, where Federal Reserve policymakers signaled that further rate hikes would be necessary to control inflation.

Market gains were led by South Korea’s two major semiconductor companies, Samsung Electronics and SK hynix, according to analyst Kim Seok-hwan of Mirae Asset Securities.

“Investors are anticipating that semiconductor companies could gain better bargaining power due to a sustained supply bottleneck,” Kim said.

Risk appetite also improved on expectations that tensions involving the United States and Iran are easing. Reports indicated that Iran agreed to reopen the Strait of Hormuz, a critical oil shipping route, alongside a signed memorandum of understanding aimed at ending the conflict.

The Federal Reserve’s decision to keep interest rates unchanged for a fourth consecutive meeting appeared to have limited influence on investor sentiment.

News.Az 

By Nijat Babayev