South Korean stocks hit record high on Samsung, SK hynix
South Korean equities reached a new all-time high Friday following the seven-day Chuseok holiday, driven by strong performances from Samsung Electronics and SK hynix.
Meanwhile, the Korean won dropped sharply to its lowest level in over five months, News.Az reports, citing Yonhap.
The benchmark Korea Composite Stock Price Index (KOSPI) added 61.39 points, or 1.73 per cent, to close at 3,610.6, surpassing the landmark 3,600 line for the first time.
It marked the second straight record-high close, following the previous session on Oct. 2, when the KOSPI ended at 3,549.21.
Trade volume was heavy at 401.5 million shares worth 19.2 trillion won (US$13.5 billion), with decliners beating gainers 621 to 275.
Foreigners bought a net 1.06 trillion won worth of shares, while retail and institutional investors sold 502 billion won and 594.5 billion won worth of shares, respectively.
Analysts said investors were buoyed by reports that Samsung Electronics has moved to revive its partnerships with U.S. chipmakers Qualcomm and Intel.
The U.S. government recently approved Nvidia's chip sales for U.S. projects in the United Arab Emirates (UAE), boosting shares of SK hynix, a key supplier to Nvidia.
"During the market closure for a week, semiconductor stocks in the U.S. and Japan rose, and this upward trend was reflected in the KOSPI at the same time, benefiting the semiconductor sector," said Lee Jae-won, an analyst from Shinhan Securities.
"Also, many forecast that the memory industry is set to enter an upside phase, or supercycle," he added.
Tech giant Samsung Electronics jumped 6.07 percent to 94,400 won and its chipmaking rival SK hynix spiked 8.22 percent to 428,000 won. Hanmi Semiconductor, a chipmaking equipment supplier, shot up 18.39 percent to 119,100 won.
Thanks to the recent rally, Samsung Electronics' market value topped 550 trillion won and that of SK hynix surpassed 300 trillion won.
Top internet company Naver vaulted 5.73 percent to 267,500 won, and Kakao advanced 4.19 percent to 62,100 won.
Power plant manufacturer Doosan Enerbility surged 14.97 percent to 74,500 won, and major shipbuilder Samsung Heavy Industries rose 2.52 percent to 22,400 won.
K-pop powerhouse Hybe increased 1.87 percent to 272,500 won, and content production studio CJ ENM advanced 1.14 percent to 71,100 won.
However, defense companies finished lower following a ceasefire agreement in the Middle East. Industry leader Hanwha Aerospace dipped 5.01 percent to 1.04 million won, and LIG Nex1 sank 4.95 percent to 480,000 won.
Top carmaker Hyundai Motor dropped 1.36 percent to 217,000 won and its sister Kia lost 3.45 percent to 100,600 won.
The local currency was quoted at 1,421 won against the U.S. dollar at 3:30 p.m., down 21 won from the previous session. It was the lowest won-dollar rate as of 3:30 p.m. since April 30, when it was 1,421 won.
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