Seoul: South Korea's stock market broke the 2,900-point barrier for the first time in over three years on Wednesday, driven by continued foreign investment and developments in trade negotiations between the United States and China. The benchmark Korea Composite Stock Price Index (KOSPI) rose by 35.19 points, or 1.23 percent, closing at 2,907.04, marking its highest level since January 14, 2022.
According to Yonhap News Agency, the market saw robust trading activity with a volume of 383.5 million shares valued at 12.3 trillion won (US$9 billion). The number of advancing stocks outpaced declining ones with 600 gainers against 281 losers. Foreign investors maintained their buying streak of local shares for the sixth consecutive session.
"The KOSPI breached the 2,900-point mark on upbeat momentum created by favorable U.S.-China trade negotiations and foreign investors' continued purchase of big-cap shares," said Lee Jae-won, an analyst at Shinhan Securities. High-level officials from Washington and Beijing held trade talks in London, agreeing on a framework to address disputes concerning rare earths and technology.
Market sentiment was further bolstered by expectations surrounding the policies of the newly inaugurated Lee Jae-myung government. Lee has committed to advancing the market towards a 5,000-point era and eliminating the 'Korea discount' that arises from geopolitical concerns.
Overnight gains on Wall Street also contributed to the positive sentiment, with the Dow Jones Industrial Average, S and P 500, and Nasdaq composite all closing higher. In Seoul, major companies such as Samsung Electronics, SK hynix, and Hyundai Motor saw their stock prices increase, alongside others like Hyundai Mobis and Doosan Enerbility.
However, certain sectors experienced declines as investors took profits from the previous day's rallies. Defense and shipbuilding shares like Hanwha Aerospace and HD Hyundai Heavy saw decreases, as did major financial firms such as KB Financial and Shinhan Financial.
The local currency was trading at 1,375.0 won per US dollar, reflecting a drop of 10.7 won from the previous session.