[KOSPI 3000] From Steel and Chemicals to Semiconductors... Leading Stocks Breaking Historical Highs

KOSPI Surpasses 3000 for the First Time in 38 Years
Leading Stocks Driving Historic Highs: Shipbuilding, Steel, Machinery → Automobiles, Chemicals, Petrochemicals → Semiconductors → BBIG...

The KOSPI surpassed the 3,000 mark for the first time in history. On the 6th, the KOSPI index opened at 2,993.34, up 2.77 points (0.09%) from the previous trading day (2,990.57), and during the session, it crossed the 3,000-point threshold. This is the first time the KOSPI has exceeded 3,000 points since it first broke through 2,000 on July 25, 2007, approximately 13 years and 5 months ago. The photo shows the Hana Bank dealing room in Jung-gu, Seoul, on that day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Minwoo Lee] The KOSPI surpassed the 3000-point mark for the first time in 38 years since its index calculation began. Various sectors, from heavy industries such as steel and chemicals to Chinese consumer-related stocks, internet platforms, and secondary batteries, have driven the domestic stock market at different phases.

After the IT bubble burst in the early 2000s, from 2004, stocks related to Chinese infrastructure such as construction, shipbuilding, machinery, and steel began to lead the market. POSCO is a representative example. From January 3, 2005, at 185,000 KRW, to April and July 2007, when the KOSPI broke through 1500 and 2000 points respectively, POSCO's stock price soared to 394,000 KRW and 566,000 KRW. It rose 205.9% over 2 years and 7 months, becoming the second largest by market capitalization. During the same period, it far exceeded the KOSPI's rise of 124.6%, leading the bull market.

From 2009, when the market began recovering from the downturn caused by the global financial crisis, the automobile, chemical, and refining sectors led the stock market. This was thanks to the revival of consumption suppressed by the financial crisis, which caused a surge in automobile and chemical exports. Hyundai Motor's stock price, which was 41,700 KRW on January 2, 2009, jumped 324% to 177,000 KRW on January 3, 2011. Its market cap ranking rose from 11th to 3rd. Kia Motors' stock price skyrocketed 653% from 6,970 KRW to 52,500 KRW during the same period. Its market cap ranking soared from 59th to 9th. During this period, LG Chem's stock price rose from 75,100 KRW and 26th in market cap to 390,500 KRW and 6th.

From 2017, an IT market centered on semiconductors unfolded. On October 30, the KOSPI surpassed 2500 points for the first time ever. This was 10 years and 3 months after it first crossed 2000 points on July 25, 2007. Thanks to the global stock market boom and strong performances in electronics (up 51.8% since the beginning of the year), pharmaceuticals (50.2%), and medical precision instruments (31.2%), the market entered a new era. Leading semiconductor stocks such as Samsung Electronics and SK Hynix drove the index, while internet platform NAVER also secured the 6th position in market capitalization.

After experiencing a historic plunge in March last year due to the economic slowdown caused by the novel coronavirus disease (COVID-19), the KOSPI's rebound was led by 'BBIG' sectors: batteries, bio, internet, and games. With the spread of non-face-to-face lifestyles, traditional consumer stocks, travel stocks, and traditional manufacturing sectors performed poorly. LG Chem, the leading secondary battery stock, rose about 160% last year, reaching 3rd in market capitalization. Samsung Electronics, which had held the top market cap position for 20 years, also showed strong earnings and rose about 45% from the beginning of the year, breaking the 80,000 KRW barrier.