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KOSPI index rally hits new all-time high

Posted May. 12, 2017 07:15,   

Updated May. 12, 2017 07:21


The joint turnaround in KOSPI and KOSDAQ has pushed the indices to its record-high levels, with KOSPI rising close to the 2,300 range.

KOSPI closed the market on Thursday at 2,296.37, up by 1.16 percent than the previous day. While the index slowed down after the market opened on Thursday, it soon rebounded thanks to strong foreign buying, and propelled near the 2,300 level.

A 444.2 billion won worth of stocks were sold as day-trades by individual investors, but that did not stop the index from rising, backed by aggressive buying trends from institutions at 331.7 billion won and foreign investors at 105.1 billion won. When broken down into industries, bank stocks enjoyed the highest growth by 3.23 percent, followed by chemicals, pharmaceuticals, securities, and service sectors, which also increased by over 2 percent.

Market experts analyzed that investors were triggered by expectations on policies to be set by the new administration. "Higher indices led to many day-trading, but were offset by expectations on the new government's policies and better performances from businesses," said analyst Kim Seong-hwan at Bookook Securities.

KOSDAQ also rose by 0.76 percent and closed the day at 647.58, beating the previous highs of 2017. It came as the highest end-of-day price in six months since Oct. 27, 2016 when it closed at 648.57.

Min-Ki Shin minki@donga.com