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KOSPI surges past 6,400 to new all-time high
KOSPI and Kosdaq figures are displayed on an electronic board in the dealing room of Hana Bank’s headquarters in Seoul, Wednesday. The benchmark KOSPI closed at 6,417.93, up 29.46 points, or 0.46 percent, while the secondary bourse Kosdaq ended at 1,181.12, up 2.09 points, or 0.18 percent. Yonhap
By Jun Ji-hye
Korea's benchmark index tops G20 in April gains despite Middle East tensions
The KOSPI extended its record run for a second straight day Wednesday, breaking above the 6,400 level for the first time.
The rally has been fueled by rising optimism over semiconductor earnings and sustained foreign inflows, even amid Middle East tensions, helping the index post the strongest gains among G20 markets so far in April.
The KOSPI opened 13.5 points, or 0.21 percent, higher at 6,401.97 and extended its gains to close at 6,417.93, up 29.46 points, or 0.46 percent, marking its first close above the 6,400 level.
The previous day, the index had already set a record closing high of 6,388.47, surpassing its prior peak of 6,307.27 reached on Feb. 26.
Data from the Korea Exchange showed the KOSPI jumping by 26.4 percent in April, making it the top performer among G20 equity markets. That gain far exceeds those of Japan’s Nikkei 225 at 15.2 percent, Turkey’s BIST 100 at 13.2 percent, India’s BSE Sensex at 9.1 percent and the U.S. S&P 500 at 8.9 percent.
Analysts say the sharp rally suggests the market is beginning to price in a recovery in earnings more fully across key sectors that had long been weighed down by geopolitical uncertainties.
“Additional increases in forward earnings per share will be a crucial factor in strengthening the KOSPI’s valuation appeal,” said Lee Kyung-min, an analyst at Daishin Securities. “A deal in ongoing negotiations could trigger a strong upswing, while limited economic fallout would raise the likelihood of a V-shaped recovery.”
Nonetheless, the rally is facing emerging headwinds. Concerns grew after reports said U.S. Vice President JD Vance’s planned trip to Pakistan had been postponed, while Iran has reportedly informed Washington, via Pakistan, of its decision to skip a second round of negotiations.
Amid the heightened uncertainty, the secondary Kosdaq opened down 2.2 points, or 0.19 percent, at 1,176.83, but later pared losses to close at 1,181.12, up 2.09 points, or 0.18 percent.
In the Seoul foreign exchange market, the local currency opened 11 won weaker at 1,479.5 won per dollar and ended onshore trading at 1,476 won, down 7.5 won.
The move was attributed to a stronger dollar alongside a surge in West Texas Intermediate, which rose above $90 per barrel.