Kospi surpasses 2,700 mark for the first time

South Korea’s benchmark Kospi surpassed the 2,700-point mark for the first time on Friday. The country’s exchange rate fell below 1,090 won per dollar, which is the lowest in the last two and a half years. As foreign investors buy South Korean stocks based on the expectations for the global economic recovery, both the stock market and the won’s value are going up.

Kospi closed at 2,731.45 on Friday, 35.23 points higher than the previous day. Foreign investors drove the upward trend of Kospi by buying semiconductor and pharmaceutical stocks worth 770 billion won while individual and institutional investors net sold. The net purchase amount of foreign investors this month amounts to 1.570 trillion won, leading Kospi to replace its record high for four days in a row.

The exchange rate, which fell below 1,100 won per dollar on Thursday for the first time in 2.5 years, had a sharp fall and closed at 1,082.1 won per dollar. This is the lowest level since 1,077.2 won per dollar recorded on June 12, 2018. The cycle of the strong won attracting foreign investors to the South Korean stock market and the buying trend making the won even stronger is repeating.


yunjng@donga.com