Seoul: South Korean stocks topped the 5,800-point mark for the first time Friday to end at a fresh record high amid expectations that upcoming investor-friendly measures will help lift market valuations. The local currency fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 131.28 points, or 2.31 percent, to close at an all-time high of 5,803.53. After a three-day Lunar New Year holiday break, the index surged Thursday to top the 5,600 level, with experts noting that pent-up demand accumulated during the holiday continued to flow into the stock market.
The KOSPI has been on a bull run recently, surpassing the 5,000 mark for the first time ever on January 27 and the 5,500 level on February 12. "Geopolitical tensions have heightened after U.S. President Donald Trump signaled the possibility of military action against Iran following a 10-day negotiation deadline, and some analysts suggest the risk of a full-scale conflict is not negligible," Kim Seok-hwan, an analyst at Mirae Asset Securities, said.
"But investors have maintained expectations for a series of measures by the government and companies to boost shareholder returns and overall market valuations," he added. U.S. shares lost ground Thursday (U.S. time) amid concerns about the U.S.-Iran situation and risks linked to massive investments in artificial intelligence (AI), as the U.S. private market and alternative assets manager Blue Owl Capital announced it is going to tighten investor liquidity.