South Korea’s benchmark Kospi index surged past 5,600 points on Friday, reaching a new high despite a downturn in New York trading. The index’s rapid ascent, exceeding 5,500 in just twelve trading days after breaching the 5,000 mark on January 27th, is largely attributed to strong performance in the semiconductor sector.
The Kospi opened higher and quickly surpassed the 5,400 level, ultimately breaking through 5,500 with a daily increase of over 160 points. This momentum follows a broader rally that has seen the Korean stock market climb to become the world’s eighth largest, surpassing both Germany and Taiwan, according to recent reports.
Analysts at Hana Securities have suggested a potential upside for the Kospi, forecasting a possible rise to 7,900 points. This optimistic outlook is predicated on continued positive trends in semiconductor profits and an expansion of global liquidity. Korea Investment & Securities has also raised its Kospi target band to 4,900-7,250 points, anticipating the continuation of the semiconductor rally throughout the first half of the year.
The surge is being fueled by investor confidence in companies like Samsung Electronics and SK Hynix. Recent reports indicate a strong return of investment sentiment in artificial intelligence-related stocks, with SK Hynix experiencing a significant pre-market jump. However, foreign investors have been observed selling off shares of Samsung Electronics, contributing to market volatility.
News2day reported that the market’s strength is also linked to expectations of increased dividend payouts by Korean companies. Analysts predict a “high-high” scenario for the market, driven by both semiconductor performance and enhanced shareholder returns, with a projected EPS and PER increase leading to a 7,250 point target.
