Seoul stocks jump 3% to top 5,600 milestone on chip rally

An electronic signboard at Hana Bank in Seoul shows that the Korea Composite Stock Price Index (KOSPI) topping the 5,600-point mark, Thursday. Yonhap

Korean stocks surpassed the 5,600-point mark for the first time ever Thursday, boosted by sharp gains in semiconductor and other blue-chip tech shares amid optimism about artificial intelligence (AI). The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 170.24 points, or 3.09 percent, to close at an all-time high of 5,677.25.

The previous record high was set on Feb. 12, when the index closed at 5,522.27.

Trade volume was heavy at 1.17 billion shares worth 28.59 trillion won ($19.76 billion), with winners outnumbering losers 666 to 231.

After a three-day break for the Lunar New Year holiday, the index opened at a record high on Thursday and maintained its upward momentum on solid buying by institutional investors.

Institutions scooped up a net 1.64 trillion won worth of shares, while foreign retail investors sold a net 918.03 billion won and 860.76 billion won worth of shares, respectively, for profit-taking.

"Nvidia, Broadcom and other major U.S. AI firms are scheduled to present earnings starting next week and investor preference for chip-related stocks is expected to persist," Kiwoom Securities analyst Lee Sung-hoon said.

"Upward momentum is also expected from growing pressure on listed firms to boost shareholder returns ahead of next month's annual meetings, as well as rising prospects for passage of the commercial law revision," he added.

Market bellwether Samsung Electronics jumped 4.86 percent to 190,000 won, and chip giant SK hynix soared 1.59 percent to 894,000 won.

No. 1 carmaker Hyundai Motor surged 2.81 percent to 513,000 won, while Kia advanced 3.6 percent to 170,000 won.

Leading battery maker LG Energy Solution climbed 2.15 percent to 403,500 won, and artificial intelligence investment firm SK Square went up 1.43 percent to 566,000 won.

Bio giant Samsung Biologics added 0.58 percent to 1,720,000 won, and Celltrion increased 2.73 percent to 244,500 won.

Nuclear power plant builder Doosan Enerbility rose 1.76 percent to 98,400 won, and defense giant Hanwha Aerospace jumped 3.98 percent to 1,149,000 won.

Leading shipbuilder HD Hyundai Heavy spiked 5.71 percent to 574,000 won, while its rival Hanwha Ocean shot up 8.32 percent to 140,600 won on news that U.S. President Donald Trump's administration unveiled an action plan last week to rebuild America's shipbuilding industry, pledging to continue "historic" cooperation with Korea and Japan.

But KB Financial lost 0.83 percent to 166,500 won, and Shinhan Financial sank 2.15 percent to 100,300 won.

The Korean won was quoted at 1,445.5 won against the U.S. dollar at 3:30 p.m., down 0.6 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 3.6 basis points to 3.178 percent, and the return on the benchmark five-year government bonds added 2.9 basis points to 3.426 percent.