Officials celebrate the Korea Composite Stock Price Index surpassing the 8,000-point mark at a trading room of Hana Bank in Seoul on Tuesday. Photo by Yonhap
South Korean stocks pulled off a new record high over the 8,000-point level Tuesday driven by optimism for a possible U.S.-Iran peace agreement that would open the Strait of Hormuz. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 199.8 points, or 2.55 percent, to close at a record 8,047.51, extending its winning streak for the third consecutive session.
It is the first time that the KOSPI has closed over the 8,000-point level, following its breaking of the 7,000-point threshold on May 6.
The index started 2.84 percent higher as investors were boosted by U.S. President Donald Trump’s latest comments that negotiations with Iran to extend their ceasefire and reopen the strait were “proceeding nicely.”
Following U.S. forces’ attack on Iran later, the KOSPI trimmed gains slightly but closed in unprecedented territory.
Trading volume was heavy at 514.3 million shares worth 39.1 trillion won (US$26 billion), with losers far outnumbering winners 653 to 234.
Institutions purchased a net 132.7 billion won worth shares, while foreign investors sold a net 184.1 billion won worth of shares and individuals dumped a net 616.7 billion won.
“Institutions scooped up large caps, pushing up the index,” Lee Kyung-min, an analyst from Daishin Securities, said, citing the eased tensions in the Middle East.
Market bellwethers of Samsung Electronics and SK hynix led the rally.
Samsung Electronics rose 2.22 percent to 299,000 won, and SK hynix jumped 5.72 percent to a record 2.05 million won.
Top carmaker Hyundai Motor vaulted 5.19 percent to 689,000 won, and major shipbuilder Hanwha Ocean soared 10.23 percent to 134,700 won.
Pharmaceutical giant Samsung Biologics added 0.71 percent to 1.4 million won, and K-pop agency Hybe gained 0.43 percent to 236,000 won as its artist BTS won Artist of the Year at the American Music Awards.
The Korean won was quoted at 1,504.3 won against the U.S. dollar at 3:30 p.m., up 12.9 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 7.2 basis points to 3.664 percent, while the return on the benchmark five-year government bonds dropped 6.2 basis points to 3.901 percent.
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