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KOSPI tops 6,750 intraday, ends 1.38% lower after 3-day streak on oil surge
The benchmark KOSPI’s closing price is displayed at the dealing room of Hana Bank’s headquarters in Seoul, Thursday. The index climbed to 6,750.27, surpassing Tuesday’s intraday record of 6,712.73, but ultimately closed at 6,598.87, down 92.03 points, or 1.38 percent. Yonhap
By Jun Ji-hye
Won weakens as hopes for US rate cuts fade
The KOSPI briefly rose above the 6,750 mark to hit a new intraday high Thursday, but later gave up its gains to finish lower amid rising global oil prices.
The benchmark index opened at 6,739.39, up 48.49 points, or 0.72 percent, from the previous close, and quickly climbed to 6,750.27, surpassing Tuesday’s intraday record of 6,712.73. It then turned downward in the afternoon and closed at 6,598.87, down 92.03 points, or 1.38 percent.
The index’s strong start was fueled by better-than-expected first-quarter results from four major Big Tech companies. However, the rally lost momentum as global oil prices climbed after the U.S. reaffirmed its maritime blockade against Iran. West Texas Intermediate crude futures hovered around $109 per barrel in after-hours trading.
Investor sentiment was further weighed down by a hawkish readout of the Federal Open Market Committee (FOMC) meeting.
Despite the late-session decline, KOSPI has maintained an upward trend in recent days, driven by strength in semiconductor shares.
A day earlier, the benchmark had finished at a record 6,690.90, up 49.88 points, or 0.75 percent, marking its third straight session of record closing highs.
While some have raised concerns that the index may be nearing a peak, the broader brokerage consensus still favors further gains.
“Continued strength in the after-hours trading of three hyperscalers, excluding Meta, along with an upward revision of their combined capital spending to about $660 billion this year, points to sustained momentum in artificial intelligence demand and the investment cycle,” said Han Ji-young, an analyst at Kiwoom Securities. “This trend is likely to support upward revisions in earnings forecasts for Korean semiconductor companies.”
Market experts also argue that KOSPI’s valuation remains low, making it premature to view the market as overheated. The index’s forward price-to-earnings ratio is currently in the low 7.3 range, well below the level of 10 that is typically considered indicative of undervaluation.
“Although the market may go through a phase of short-term consolidation as it digests gains and eases overheating, the broader uptrend is likely to persist, driven by earnings-based valuation normalization,” said Lee Kyung-min, an analyst at Daishin Securities. “The impact of geopolitical risks has weakened as they have largely been priced in. A ceasefire agreement could trigger a strong rally, while a V-shaped rebound is possible if economic shocks remain limited.”
The secondary bourse Kosdaq, meanwhile, opened at 1,224.75, up 4.49 points, or 0.37 percent, from the prior session, but quickly reversed course to close at 1,192.35, down 27.91 points, or 2.29 percent.
In the Seoul foreign exchange market, the Korean won weakened as expectations for U.S. interest rate cuts diminished. The won opened at 1,486.5 per dollar, down 7.5 won from the previous close, and ended onshore trading at 1,483.3, down 4.3 won.