For the first time in history, the KOSPI broke through 3200 and wrote a new history. It has been 38 years since its inception in 1983. The KOSDAQ index has also reached close to the 1000 hill after 20 years. It is a situation where the domestic stock market is properly listed on the’bull light’ in the new year.
On the 25th, KOSPI finished 3208.99, up 68.36 points (2.18%) from the previous trading day, breaking the high again.
Thanks to foreigners/organizations’Ssang-Kul’
On the 25th, KOSPI closed the market at 3208.99, up 2.18% (8.36 points) from the previous trading day. The record high on the 21st (3160.84) was replaced again in two days. It rose to 3212.22 at one time during the week. The market cap also increased to 2212 trillion won.
Recently, the speed of the KOSPI is so dizzy. After passing 3000 on the 7th and 3100 on the 8th, it broke through 3200 in 11 trading days. KOSDAQ is also without hesitation. The KOSDAQ finished at 999.3, up 19.32 points (1.97%) from the previous day.
The number one contributor to the rise of the KOSPI is’double purchase’ by foreigners and institutional investors. Institutional investors and foreigners took over Baton as individual investors, who had been leading the index upward, turned to’selling’ (560 billion won) to realize profit margins. The institution and foreigners bought stocks worth 350 billion won and 240 billion won, respectively. Seo Sang-young, director of investment strategy at Kiwoom Securities, explained, “As the likelihood that the US administration’s stimulus measures were handled positively increased, investment sentiment improved.”
The industries that led the market on this day were information technology (IT) and automobiles. According to the observation that Samsung Electronics will begin mass production of Intel’s chipset in the US, the transaction was finished at 89400 won, a 3% increase. SK Hynix also surged 5.06%. In the automobile industry, Kia Motors (6.26%) and Hyundai Motors (1.17%) showed remarkable gains.
The market’s interest is heading over 3200 to break through the 3300 line. Lee Eun-taek, a researcher at KB Securities, said, “KOSPI’s PER (share-to-earnings ratio) is at the highest level in history, but its PBR (net-to-stock ratio) is 1.2x, which is the average of the past.” Considering it, it is the point of the bull market,” he analyzed.
Kim Dae-joon, head of the investment strategy team at Korea Investment & Securities, said, “If the global economic stimulus occurs after the inauguration of Biden’s US administration, corporate performance will improve,” he said. “KOSPI is expected to exceed 3300 degrees.
However, the US Federal Open Market Committee (FOMC) meeting this week and the announcement of corporate earnings for the fourth quarter are considered variables that will weigh down the market. Meanwhile, the won is strong. On this day, the value of the won was 2.5 won higher than the previous trading day (the exchange rate fell) and ended at 1100.7 won per dollar.
Reporter Hwang Eui-young [email protected]