"Record High Rally" KOSPI's First 3290...Will It Break the All-Time Closing High?

On the 23rd, buoyed by the positive momentum in the US stock market, the KOSPI index showed an early upward trend. Dealers are working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Seon-ae] The KOSPI is making new history by breaking its all-time high record. It surpassed the 3290 level, setting a new intraday all-time high. This is the first time the KOSPI has broken through the 3290 mark. Accordingly, it is expected to set an all-time high closing price record on the 24th as well.

On this day, the KOSPI opened at 3281.47, up 5.28 points (0.16%), and maintained a firm upward trend. It rose intraday to 3292.27, surpassing the previous intraday all-time high of 3281.96 recorded on the 16th, breaking the record after 8 days. As of 1:26 PM, the KOSPI is at 3287.86. If it closes at this level, it is expected to break the all-time high closing price of 3278.68 recorded on the 16th.

The KOSDAQ opened at 1017.11, up 0.65 points (0.06%). As of 1:27 PM, the KOSDAQ is at 1014.27.

Only individual investors are net buyers. Individuals are net buyers with 41.6 billion KRW in the KOSPI market and 256.4 billion KRW in the KOSDAQ market. Foreign investors are net sellers in both markets, selling approximately 148.6 billion KRW and 178.2 billion KRW respectively. Institutions are buying about 98.2 billion KRW in the KOSPI market but are net sellers of about 73 billion KRW in the KOSDAQ market.

Han Ji-young and Kim Se-heon, researchers at Kiwoom Securities, said, "The Korean stock market is expected to show a firm upward trend as it digests some hawkish remarks from Federal Reserve officials amid expectations of strong exports due to favorable manufacturing conditions in advanced countries." They added, "The stronger-than-expected manufacturing PMI in the US and Europe in June, which was expected to peak out, reconfirms that the economic momentum of advanced countries has not slowed down and is expected to extend the improvement in Korea's export performance."

They continued, "Although macroeconomic uncertainties remain, there is a high possibility of profit-taking from some mega-cap growth stocks such as Kakao and Naver, which have recently shown short-term sharp rises. However, considering the ongoing sector rotation market, the downside of the index is expected to remain firm."

Seo Sang-young, a researcher at Mirae Asset Securities, forecasted, "The Korean stock market will challenge breaking the all-time high again, led by financial stocks and other cyclical stocks, despite a flat start and hawkish remarks from Federal Reserve officials."