Seoul: South Korea's main Korea Composite Stock Price Index (KOSPI) surged past 7,380 for the first time in history on Wednesday, driven by a significant boost in major technology stocks. The rise comes amid heightened expectations for increased demand for high-end chips, as global tech giants intensify their efforts to build larger artificial intelligence (AI) data centers.
According to Yonhap News Agency, investors found encouragement in the optimism that the ongoing conflict in the Middle East would remain contained and not escalate into a broader regional war. The benchmark KOSPI closed at 7,384.56, marking a 6.45 percent increase from the previous session. This historic achievement also marked the first time the main index opened above the 7,000-point milestone, starting at 7,093.01.
During intraday trading, the index soared to as high as 7,420 points, led by strong performances from tech heavyweights Samsung Electronics and SK hynix. The surge coincided with a statement from U.S. President Donald Trump, who hinted at halting efforts to assist ships stuck in the Strait of Hormuz to potentially finalize a deal with Iran, which further bolstered market sentiment.
As the KOSPI hit the 7,000 mark, its market capitalization surged past 6,000 trillion won (approximately US$4,116 billion) for the first time, according to the bourse operator. The index has been on a record-breaking run, primarily fueled by robust gains in AI-related stocks.
Samsung Electronics experienced a remarkable 14.41 percent rise, propelling it into the exclusive $1 trillion market capitalization club, making it the second Asian company to achieve this after Taiwan Semiconductor Manufacturing Co. SK hynix also saw its market capitalization exceed 1,133 trillion won.
Top automotive companies Hyundai Motor and Kia Motors also recorded gains, with Hyundai rising 2.04 percent and Kia increasing by 0.39 percent. Analysts have adjusted their target prices for the KOSPI index, reflecting the overall bullish sentiment in the market.
Han Ji-young, an analyst at Kiwoom Securities, noted that the KOSPI's performance is supported by leading sectors, such as semiconductors. Hana Securities projected that the KOSPI could potentially rise above 8,000 this year, assuming the U.S. Federal Reserve may cut its key interest rate once or twice.
Source: Yonhap News Agency