A stock ticker at Hana Bank headquarters in central Seoul shows the benchmark KOSPI closing at 6,475.63, Friday. The secondary bourse Kosdaq, meanwhile, surpassed 1,200 for the first time since 2000. Yonhap
Korea’s secondary bourse Kosdaq closed above the 1,200 mark, Friday, for the first time since 2000, as investors rushed to purchase shares of materials and biotech.
Benchmark index KOSPI ended slightly lower, snapping a three-day record-breaking run, as renewed tensions in the Middle East weighed on investor sentiment.
Kosdaq rallied 2.51 percent to close at 1,203.84, marking its highest level since Aug. 4, 2000, when it finished at 1,238.80 during the dot-com bubble. Gains were largely led by materials, parts and equipment firms, as well as biotech stocks.
On Kosdaq, foreign and institutional investors drove the rally, purchasing a net 732.1 billion won and 187.8 billion won, respectively, while retail investors locked in profits, selling a net 901.7 billion won.
Meanwhile, KOSPI opened at 6,496.10, up 0.31 percent from the previous session, according to the Korea Exchange. The index briefly rose above 6,500 during intraday trading, but gave up gains to close at 6,475.63, down 0.18 percent.
Foreign investors pressured the market, offloading a net 1.95 trillion won ($1.31 billion) worth of shares. Institutions and retail investors helped to limit the decline, buying a net 805.6 billion won and 1.18 trillion won, respectively.
Heavyweight chip stocks, which had led the KOSPI rally in recent sessions, came under pressure. SK hynix slipped 0.24 percent to 1,222,000 won, while Samsung Electronics fell 2.23 percent to 219,500 won.
Industry watchers view the divergence as a typical rotation trade, with funds shifting into Kosdaq after KOSPI’s large-cap-driven rally showed signs of fatigue.
Currency markets mirrored the cautious tone. The Korean won weakened further against the U.S. dollar, closing at 1,484.5 per dollar, down 3.5 won from the previous session.
Source: Korea Times News
