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[Asia Economy Reporter Eunmo Koo] The KOSPI, which ushered in the era of the 3000 index, continued its unstoppable upward trend and surpassed the 3100 mark.
On the 8th, the KOSPI opened at 3,040.11, up 8.43 points (0.28%) from the previous trading day. From the early session, individual investors began buying, pushing the index past 3,050 and challenging the 3,100 level. As of 10:52 a.m., it recorded 3,101.03, up 69.35 points (2.29%) from the previous day. Individual investors, who have been leading the market recently, continued to drive the index up by net buying over 250 billion KRW as of 10:54 a.m. that day.
Despite the overheating trend due to consecutive record highs, the buying momentum of individual investors is interpreted as reflecting the Fear Of Missing Out (FOMO) sentiment. Ha Dae-hoon, a researcher at SK Securities, said, "Except for price burdens, there are no events affecting the stock market, and the environment surrounding the market remains favorable," adding, "Although the seemingly high 3000 level has been reached, the liquidity-driven market is expected to continue for the time being."
On this day, the market was led by Hyundai Motor Group stocks following news that Apple might partner with Hyundai Motor Group to launch a self-driving electric vehicle, the so-called ‘Apple Car.’ According to a media report, Apple proposed cooperation to Hyundai Motor Group for the Apple Car launch and is currently negotiating. Apple is expected to collaborate with Hyundai Motor Group not only on electric vehicle production but also on battery development. The Apple Car is targeted for release in 2027.
Expectations for Apple Car cooperation caused Hyundai Motor Group stocks to react quickly. As of 9:50 a.m., Hyundai Mobis recorded an intraday upper limit and reached a 52-week high, showing strong performance, while Hyundai Motor and Hyundai Wia surged more than 20%. Additionally, Kia Motors and Hyundai Glovis also showed gains around 10%.
The record-high rally of Samsung Electronics, the market leader that announced surprise earnings that day, also continued. Samsung Electronics rose 2.49% early in the session, reaching 849,000 KRW. Samsung Electronics announced operating profits close to 36 trillion KRW last year, an increase of about 30% compared to the previous year.
Meanwhile, analysis suggests that a significant rebound in earnings fundamentals this year is necessary for the KOSPI to settle above the 3000 level. So-eun Ahn, a researcher at IBK Investment & Securities, said, "In the past, corporate earnings played a more important role than liquidity in overcoming the psychological resistance level of the KOSPI," adding, "It will not be much different this time."
Researcher Ahn explained, "The corporate earnings expected by the market this year are lower than the record highs of 2017-2018," adding, "Of course, if COVID-19 management, vaccination, and large-scale stimulus measures lead to a better-than-expected fundamental rebound, the stock price level can be rationalized, but if it does not exceed expectations, 3000 may remain a psychological resistance level."
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