An electronic board at a Hana Bank dealing room in central Seoul shows the Kospi at 3,431.37, up 24.06 points or 0.71 percent from the previous trading session. (Im Se-jun/The Korea Herald)
South Korea’s benchmark Kospi reached a new high during intraday trading on Tuesday, setting records for a fifth consecutive trading day.
The Kospi rose as high as 3,452.50 shortly after noon, gaining roughly 45 points from the previous session’s close. This set a new all-time intraday record for the index, surpassing the previous high of 3,420.23 reached the day before and representing a fifth consecutive session of record highs.
Starting the session at 3,421.13, the Kospi gradually extended its gains. After touching the peak, the index eased slightly, hovering just below 3,450 points. It stood at 3,451.48 as of 2 p.m., up 44.17 points, or 1.3 percent from the previous trading day.
Foreign investors net bought 1.07 trillion won ($775 million), while institutional investors purchased shares worth 241 billion won. Retail investors were the only net sellers, offloading 1.31 trillion won to lock in profits as of 2 p.m.
Buoyed by investor sentiment, shares of market heavyweights Samsung Electronics and SK hynix surged to 52-week highs, reaching 78,600 won and 354,000 won, respectively, during intraday trading.
The Kospi tracked overnight gains on Wall Street, led by hopes that the US Federal Reserve will cut its benchmark interest rates later this week. According to the CME FedWatch tool, the market is pricing in a 0.25 percentage point rate cut, which would bring the target range down to 4-4.25 percent.
Backed by dovish hopes, major US stock indices, including the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and the S&P 500, posted gains.
With the Fed expected to lower interest rates, investors are increasingly hopeful that the Bank of Korea could bring down its policy rate, which has been sitting at 2.5 percent since May.
Analysts noted that the recent Kospi rally represents a rare bullish surge.
“The Kospi is hitting all-time highs, and this represents more than just record figures. It reflects a historically rare surge. The index has risen 42 percent since the start of the year, marking the fifth major bull run in its 50-year history,” said analyst Lee Eun-taek at KB Securities.
“The rally is supported not just by stock market stimulus measures but also by the broader macroeconomic environment,” Lee said, referring to the relatively weaker dollar, low oil prices and low interest rates.
“The combination of the three factors could drive the Korean stock market even higher,” Lee said.
silverstar@heraldcorp.com