Seoul’s stock market surged to an all-time high June 18, with the benchmark KOSPI index smashing through the 9,000-point barrier for the first time as a powerful rally in chipmakers offset hawkish signals from the Federal Reserve and headlined a sixth straight session of gains.
The Korea Composite Stock Price Index closed at 9,063.84, up 199.6 points or 2.25%, after rising as high as 9,106.07 during intraday trading, according to data reported by United Press International via Yonhap News Agency. Trade volume was heavy at 505.9 million shares valued at 49.9 trillion won (about $32.7 billion). Foreign investors were net buyers, purchasing 1.3 trillion won in equities, while retail and institutional investors combined to net sell 1.2 trillion won. Despite the broad index gain, losers outnumbered gainers 109 to 788.
The rally was led by South Korea’s two dominant semiconductor firms. Market capitalization leader Samsung Electronics climbed 4.62% to 362,500 won, and rival SK hynix jumped 6.51% to 2,685,000 won.
Kim Seok-hwan, an analyst at Mirae Asset Securities, attributed the chip sector’s strength to supply dynamics. “Investors are anticipating that semiconductor companies could gain better bargaining power due to a sustained supply bottleneck,” Kim said, as reported by Yonhap.
Non-semiconductor sectors lost ground. Defense contractor Hanwha Aerospace fell 2.86% to 1,189,000 won, shipbuilder HD Hyundai Heavy Industries dropped 3.25% to 684,000 won, and financial firm KB Financial edged down 0.55% to 163,100 won.
The index’s record run came despite Wall Street losses the previous session after Federal Reserve policymakers said a rate hike would be unavoidable to control inflation. The Fed’s rate freeze — the fourth consecutive on-hold decision — appeared to have limited impact on South Korean investor sentiment, according to the report.
Geopolitical relief also boosted risk appetite. The United States announced that Iran has agreed to reopen the Strait of Hormuz, a critical oil shipping route, and revealed a signed memorandum of understanding aimed at ending the war. The prospect that the U.S.-Iran conflict is winding down helped revive appetite for risk assets, the report said.
In currency markets, the Korean won weakened to 1,527.1 won against the U.S. dollar, down 13.7 won from the previous session. Bond prices closed lower, pushing yields higher: the yield on three-year Treasury bonds rose 4 basis points to 3.75%, and the yield on benchmark five-year government bonds added 5.2 basis points to 3.949%.