South Korean stocks experienced a significant surge, climbing by more than 5% to reach a new all-time high on Monday, nearing the 7,000-point threshold. Investors focused on semiconductor shares while keeping an eye on developments in US-Iran peace discussions. The Korean won also strengthened notably against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) soared by 338.12 points, marking a 5.12% increase to achieve a fresh record peak of 6,936.99. Market activity was robust, with a trade volume of 864.3 million shares valued at 41.3 trillion won (US$28.2 billion), where losers outnumbered winners with 473 to 392, as reported by Yonhap news agency.
Foreign investors acquired 3 trillion won in local shares, while institutions netted 1.9 trillion won. In contrast, retail investors divested a net 4.8 trillion won. The market opened 2.79% higher following US President Donald Trump’s announcement of a plan to facilitate non-conflict ships through the Strait of Hormuz as a humanitarian gesture.
The KOSPI continued its upward trajectory in the afternoon, driven by foreign and institutional investments. Tech shares, influenced by gains on Wall Street and increased foreign investor activity before the market closure for Children’s Day, played a significant role in this market rally.
The index has steadily climbed from the 5,000-point mark in late January to surpass the 6,000-point level in February. After recovering from losses incurred during the US-Iran conflict in late February, the KOSPI is now on the verge of reaching the unprecedented 7,000-point level, fueled by optimism surrounding the AI sector and expectations for the reopening of vital waterways.
