Seoul: South Korean stocks achieved a fresh all-time high Friday, propelled by robust gains in artificial intelligence (AI)-related stocks and renewed hopes for a ceasefire in the Middle East. The local currency saw a decline against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) soared by 290.86 points, or 3.55 percent, concluding at 8,476.15, after reaching a new intraday high of 8,615.09. The trading volume was substantial, with 701.5 million shares exchanging hands, valued at 73.7 trillion won (US$48.9 billion). Despite the gains, losers outnumbered winners 686 to 205.
Foreign and individual investors offloaded local shares worth a net 1.04 trillion won and 1.4 trillion won, respectively, while institutions acquired a net 2.37 trillion won. The index resumed its record-breaking trajectory after a minor dip of 0.53 percent the previous day. Notably, the KOSPI had experienced four consecutive sessions of gains starting May 21, surpassing the 8,000-point milestone for the first time on Tuesday.
The index received a boost from overnight news that the United States and Iran had agreed to extend the current ceasefire for 60 days and resume discussions on Tehran's nuclear agenda. AI stocks were further bolstered by reports of Nvidia Corp. founder Jensen Huang's upcoming visit to South Korea. "Backed by gains in major stocks, the KOSPI rallied on news of Jensen Huang's planned visit," noted Lee Kyung-min, an analyst at Daishin Securities. "Stocks related to Huang's Korean visit closed in positive territory."
Key market players saw significant gains, with Samsung Electronics leaping 5.84 percent to 317,000 won, and chipmaker SK hynix rising 1.92 percent to 2.33 million won. LG Electronics experienced a remarkable surge of 29.93 percent to 293,000 won, while internet giant Naver climbed 14.15 percent to 234,000 won. Both companies were reportedly prioritized on Jensen Huang's Korean itinerary.
In the automotive sector, Hyundai Motor increased by 6.79 percent to 723,000 won, and its affiliate Hyundai Mobis saw an 11.95 percent rise to 768,000 won. Leading battery manufacturer LG Energy Solution advanced 3.62 percent to 458,000 won, and pharmaceutical leader Celltrion inched up 1.53 percent to 192,900 won.
Conversely, major bank Hana Financial Group saw a slight decline of 0.17 percent to 115,100 won, and food giant Nongshim dropped 0.77 percent to 385,000 won. The Korean won was valued at 1,507.9 won per U.S. dollar at 3:30 p.m., a decrease of 5.1 won from the previous session. Bond prices, which move inversely to yields, ended higher, with the yield on three-year Treasurys decreasing by 3.5 basis points to 3.731 percent, and the return on five-year government bonds falling by 6.8 basis points to 3.924 percent.