A stock ticker at Hana Bank headquarters in central Seoul shows secondary bourse Kosdaq closing at 1,161.13, up 4.99 percent from the previous session, Friday. Yonhap

The tech-heavy Kosdaq surged nearly 5 percent on Friday on optimism surrounding the new state-backed investment fund aimed at advanced industries like artificial intelligence and semiconductors, while the benchmark KOSPI, which posted a sharp rebound a day earlier, moved into a consolidation phase with slight gains.

The KOSPI opened at 7,873.12, up 0.74 percent from the previous session, and traded largely flat through the day before closing at 7,847.71, up 0.41 percent.

Samsung Electronics briefly climbed above the 300,000-won ($197) mark early in the session, setting an all-time high before reversing course to close down 2.34 percent at 292,500 won. SK hynix, meanwhile, edged up 0.05 percent to finish at 1,941,000 won.

The KOSPI has seen heightened volatility since briefly surpassing the 8,000 mark during intraday trading on May 15. After breaking through the milestone, the benchmark index reversed sharply and closed the session down more than 6 percent to finish in the 7,400 range. The turbulence continued in the following sessions, with the KOSPI falling to as low as 7,053.84 intraday on Wednesday.

The index, however, staged a powerful rebound Thursday, jumping more than 8 percent in a single session to close at 7,815.59. The rally was driven by a labor agreement at Samsung Electronics and better-than-expected earnings from Nvidia.

With the market now appearing to stabilize, investor attention has increasingly shifted toward how much further the KOSPI could climb this year after weathering the short-term correction.

Earlier, Japanese investment bank Nomura raised its year-end KOSPI target to as high as 11,000, adding to the increasingly bullish outlook surrounding Korean equities.

Meanwhile, the junior bourse Kosdaq rallied on enthusiasm surrounding the launch of the new government-backed investment fund, which targets 12 technology-focused strategic industries.

The fund is designed to allocate at least 30 percent to Kosdaq and unlisted shares, raising expectations that the Kosdaq would be among the main beneficiaries.

Source: Korea Times News