KOSPI breaks through 620-point barrier; Kosdaq also rebounds

The Korea Composite Stock Price Index (KOSPI) broke through the 620-point barrier in intra-day trading on Friday, and the Kosdaq market escaped from its two-day losing streak.

Boosted by the previous day¡¯s surge in the Nasdaq market and active buying by foreign investors, the Kosdaq index soared by 2.65 points (3.6%) to 77.21.

In the Kosdaq market, foreigners¡¯ recorded net purchases of 45.9 billion won, the largest so far this year, and continued their net buying for the sixth day in a row.

Foreign investors also led the bullish mood on the Korea Stock Exchange with net buying of 227.2 billion won. The key index rose by 15.73 points (2.6%) to close at 619.78.

In the absence of any bad news from the U.S. markets during the Lunar New Year holiday period, stock experts expect the bullish stock market to continue until the end of January, when the United States is likely to reduce interest rates.

In the Kosdaq market, communication stocks, including Korea Telecom Freetel and Korea Telecom M. Com, and other blue chips such as Humax and Kookmin Credit Card showed a bullish tone thanks to active foreign buying. Meanwhile internet-related shares, including Daum Communications Corp., Hansoft Inc. and Serome Technology fell back sharply in large trading volume.

Lee Cheol-Yong lcy@donga.com