Chipmaker SK hynix extends rally with new intraday high
South Korea’s benchmark Kospi jumped back above 6,100 points during trading Wednesday, backed by growing expectations that US-Iranian peace talks could resume soon.
The Kospi reclaimed the 6,100 threshold at the opening bell, starting the session at 6,145.75, up 2.98 percent from the previous day. Extending the gain, it traded 3.07 percent higher than a day earlier at 6,151.01 as of 2 p.m.
It marked the first time the index had climbed above 6,100 since recent Middle East tensions dampened market sentiment and pushed it lower.
In recent days, the main board has shown signs of recovery, reclaiming the 6,000 level during the previous session’s intraday trading and climbing as high as 6,026.52. Although it closed just below the 6,000 mark, it rebounded above the level in early trading Wednesday.
Market heavyweight Samsung Electronics rose 3.63 percent to 214,000 won ($145), while SK hynix had climbed 5.26 percent to 1.16 million won as of 2 p.m.
Earlier in the session, SK hynix hit a fresh record high of 1.17 million won, extending its record-breaking rally from the previous session.
Hyundai Motor gained 3.56 percent to 509,000 won, while LG Energy Solution inched up 1.63 percent to 406,500 won.
Foreign and institutional investors lifted the index, with net purchases of roughly 601 billion won and 91 billion won, respectively, while retail investors offloaded a net 1.04 trillion won on the bourse.
The rally also pushed the total market capitalization of Kospi-listed firms back above the 5,000 trillion won threshold. The combined market cap stood at 5,034.91 trillion won, up more than 100 trillion won from the previous day’s 4,894.52 trillion won at closing.
The main bourse’s market cap first exceeded 5,000 trillion won on Feb. 25, but fell sharply later that week following the US and Israel’s strikes on Iran and had failed to climb back above the level.
Market analysts viewed that the Kospi has nearly returned to preconflict levels, similar to other key stock markets.
“South Korea and US stock markets experienced sharp declines of around 10 percent from their recent peaks when war-related concerns were at their peak last month,” said Han Ji-young, an analyst at Kiwoom Securities.
“Since April, most markets have been recovering those losses, supported by growing expectations of a ceasefire,” Han added, pointing out that the Kospi’s monthly gains have outpaced those of other markets this month.
The Kospi’s previous peak remains within reach. The previous intraday high was 6,347.41 points on Feb. 27, just before the outbreak of the war. On a closing basis, its high stands at 6,307.27 from the prior session.
Some even offered a rosy outlook, forecasting that the Kospi would regain momentum and reach 7,500 within this year.
“From April onward, foreign investors are expected to focus on earnings and fundamentals again, likely boosting interest in the Kospi,” according to Kim Dong-won, an analyst at KB Securities.
“The Kospi is projected to emerge as an attractive investment destination for global investors as it enters an earnings upcycle led by the semiconductor sector. The year-end target of 7,500 is now seen as within reach,” he added.
silverstar@heraldcorp.com
