Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
KOSPI hits record closing high as SK hynix extends rally
KOSPI is displayed at the dealing room of Hana Bank in Seoul, Wednesday. The benchmark index closed at 8,864.24, up 137.64 points, or 1.58 percent, from the previous session. Yonhap
By Lee Yeon-woo
The benchmark KOSPI closed at an all-time high of 8,864.24 on Wednesday, moving within striking distance of the 9,000 milestone after rebounding sharply from early losses.
SK hynix led the surge, hitting a fresh all-time high above the 2.5 million won ($1,653.66) mark, backed by expectations for expanded shareholder returns, a strong growth outlook for high-bandwidth memory and hopes for a U.S. listing of American depositary receipts.
According to the Korea Exchange, the benchmark KOSPI finished at 8,864.24, up 1.58 percent from the previous session, closing at an all-time high. It fell short of the intraday record of 8,933.62 set on June 2.
Foreign investors sold a net 990 billion won worth of shares. But institutional and retail investors bought a net 577.7 billion won and 543 billion won, respectively, helping the index reverse early losses and close higher.
Despite a plunge in the Philadelphia Semiconductor Index in the U.S., SK hynix extended its winning streak to a fifth consecutive session, closing at 2,521,000 won, up 5.84 percent from the previous session. Samsung Electronics closed at 346,500 won, rising 1.02 percent.
Shipbuilding shares also advanced on expectations that they would benefit from the implementation of a special U.S. investment law. Hanwha Ocean and Samsung Heavy Industries each added 3.02 percent, while HD Hyundai Heavy Industries gained 1.3 percent.
Pharmaceutical and biotech shares were broadly higher as bargain-hunting demand flowed in. Samsung Biologics rose 2.8 percent, while Hanmi Pharmaceutical gained 4.9 percent.
The market is now cautiously waiting the June Federal Open Market Committee meeting on Thursday morning (local time). The U.S. benchmark interest rate is widely expected to be held steady this month, but if newly appointed Chair Kevin Warsh makes hawkish remarks, it could weigh on the domestic stock market.
“Foreign investors’ net selling over the past month appears to have been driven primarily by profit-taking in semiconductor shares and mechanical rebalancing of Korea exposure within emerging-market portfolios, with macroeconomic uncertainty adding further pressure,” said Han Ji-young, an analyst at Kiwoom Securities.
“Unless the June FOMC (Federal Open Market Committee) delivers a surprisingly hawkish outcome, macro-related selling pressure is unlikely to intensify significantly,” Han added.
The secondary Kosdaq market closed at 1,031.96, up 1.3 percent. The won-dollar exchange rate stood at 1,513.4 won, up 1.8 from the previous session.