KOSPI Surges for Fifth Straight Session, Closes Just Below Historic Highs

The KOSPI index in South Korea has reached new heights, extending its remarkable five-session rally and nearing an all-time high. The benchmark index ended the trading day with a robust gain, fueled by strong foreign and institutional buying activity, positioning it just shy of the 3,450-point milestone.

According to data from the Korea Exchange, the KOSPI concluded at 3,449.58, rising 42.27 points or 1.24% from the previous session. After opening at 3,421.13, up 0.41% from its prior close of 3,407.31, the index briefly broke above 3,450 intraday, setting a historical peak even before the close.

This upward trajectory represents a continuation of gains that began on October 10, when the KOSPI closed at 3,314.53, surpassing its prior record of 3,305.21 set on July 6, 2021. Over the subsequent sessions, the index has consistently rallied, culminating in another all-time closing high on October 16, marking the fifth trading session of this record-breaking streak.

Foreign and Institutional Investors Drive Momentum

The latest surge in the KOSPI can be attributed to a significant influx of foreign and institutional capital. Foreign investors purchased a net 1.6503 trillion KRW worth of equities, while institutional investors added another 262.7 billion KRW to their holdings. In contrast, retail investors were net sellers, offloading 1.9084 trillion KRW in shares.

Jaewon Lee, a noted researcher at Shinhan Investment Corp., highlighted the pivotal role of foreign investors. "Foreign investors have maintained a seven-day net buying streak in KOSPI stocks, particularly in heavyweight sectors like semiconductors. This rally is being fueled by the record-breaking performances of the top two market leaders by market capitalization," he said.

Performance of Key Market Leaders

Major stocks delivered a mixed performance during the session, with prominent winners leading the charge. Samsung Electronics rose 3.79%, while SK Hynix recorded an impressive 5.14% gain, both achieving 52-week highs. Hanwha Aerospace also saw a strong advance, climbing 5.58%.

On the flip side, LG Energy Solution closed with a 1.69% decline, and KB Financial Group slipped 1.51%. Hyundai Motor ended the session flat.

Looking ahead, market movement could be driven by external factors, particularly developments in U.S.-China trade relations, as well as decisions emerging from the upcoming Federal Open Market Committee (FOMC) meeting. Additionally, corporate earnings reports for the third quarter, expected to roll out starting next month, will draw significant investor attention, according to Lee.

KOSDAQ Sees Minor Decline Amid Contrasting Trends

While the KOSPI continued its upward trajectory, South Korea’s smaller-cap-focused KOSDAQ index dipped slightly. The KOSDAQ finished at 851.87, down 0.82 points or 0.10% from its previous session. Though it opened higher at 854.40, up 0.20%, the index reversed gains later in the session.

The decline in the KOSDAQ was attributed to sell-offs by foreign and institutional investors. Foreign investors offloaded shares worth 243.3 billion KRW, while institutions sold a net 50.7 billion KRW. Meanwhile, retail investors provided some support by net buying 322.7 billion KRW worth of equities.

Top-performing stocks on the KOSDAQ included Samchundang Pharm, which gained 4.07%, and EcoPro BM, which rose 1.07%. However, the index suffered losses as Rainbow Robotics tumbled 3.01% and Peptron fell 1.64%.

Korean Won Strengthens Against U.S. Dollar

On the currency front, the Korean won gained strength against the U.S. dollar during the session. The exchange rate closed at 1,378.9 KRW per dollar, marking an appreciation of 10.1 KRW from the previous session’s close of 1,389.0 KRW.

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