Korean won climbs to pre-Iran war level on returned risk appetite
The South Korean benchmark Kospi topped the 7,500-point mark for the first time in intraday trading Thursday, extending gains from the previous session.
After hitting a record high, however, the index swung between gains and losses.
The Kospi opened at 7,499.07, up 1.55 percent from the previous close, renewing its intraday record high set a day earlier at 7,426.6. It quickly climbed above the 7,500 mark and rose to 7,531.88 in early trading.
A day earlier, the index had surged more than 6 percent, surpassing the 7,000 mark for the first time.
After briefly topping 7,500 on Thursday, it quickly turned negative and fell as low as 7,257.89. It continued to move in and out of positive territory throughout the session. It stood at 7,400.32, up 0.21 percent on-session, as of 2 p.m.
Foreign investors, who had fueled the Kospi’s breakthrough rally on Wednesday with a 3.1 trillion won ($2.1 billion) net purchase a day earlier, turned into a drag on the index Thursday, capping further gains.
The Kospi saw massive trading volume, with retail investors net buying 5.6 trillion won in shares, while offshore investors countered the move by dumping a net 6.11 trillion won. Institutional investors were net buyers, purchasing 469 billion won on the main board.
Shares of Samsung Electronics and SK hynix, the country’s two semiconductor heavyweights, both hit fresh highs of 277,000 won and 1.648 million won per share, respectively, in early trading, before showing mixed performances later in the session.
Samsung Electronics stood flat at 266,000 won, while SK hynix gained 0.75 percent to 1.61 million won. SK Square, the largest stakeholder of SK hynix, edged down 1.1 percent to 1.07 million won, while Hyundai Motors rose 4.18 percent to 573,000 won.
The secondary Kosdaq stood at 1,199.26, down 0.90 percent on-session, as of 2 p.m.
Market analysts said the market was seeing sector rotation while its broader upward momentum remained intact.
“After the Kospi briefly topped the 7,500 mark in early trading, volatility widened as investors locked in profits mainly in artificial intelligence value-chain and defense stocks,” said Kang Jin-hyuk, analyst at Shinhan Securities.
“The uptrend for Samsung Electronics and SK hynix is likely to remain intact as earnings estimates continue to move higher,” said Lee Jae-won, an analyst at Yuanta Securities.
Meanwhile, the local won strengthened into the 1,440-per-dollar range for the first time since Feb. 27, before the outbreak of the Middle East conflict, backed by improving global risk appetite amid growing expectations for a ceasefire agreement between the US and Iran.
The won opened at 1,448.6 won against the dollar in onshore trading, strengthening 6.5 won from the previous session. It stood at 1,451.33 per dollar as of 2 p.m.
silverstar@heraldcorp.com
