KOSPI Gains Reach 10% YTD as Broad Rally Pushes Index Above 2640

The KOSPI index rallied strongly today, gaining 2.02%, and closing in on the YTD high. In closing at the intraday high of 2,644.40, the KOSPI is now trading 10% higher than where the year began, welcome news for bulls who had seen the index fall a similar amount in 2024. Taking a look at the 1 year chart below, and from a technical perspective, a break above 2,655 level could set the index on a path to retest 2,700 before long.

Foreign and institutional investors demonstrated strong buying patterns, with net purchases of 1,017 billion KRW and 4,168 billion KRW, respectively. Meanwhile, individual investors exhibited a net selling of 5,004 billion KRW. Analysts suggest that the decline in the won-dollar exchange rate, reaching the 1,360 range, played a significant role in improving foreign investment inflows, hence bolstering the KOSPI's upward movement. A

Among the stocks with the highest market capitalisations, Samsung Biologics gained 2.66%, LG Energy Solution advanced by 3.73%, KB Financial rose 3.03%, and HD Hyundai Heavy Industries experienced a significant leap of 6.04%. Unlike on Friday, Samsung Electronics (+0.92%), and SK Hynix (+1.5%), also participated in what was a broader rally than recent days.

On the Kosdaq front, the index closed at 725.27, marking a rise of 9.29 points or 1.30%. Foreign and institutional investors further displayed their buying interest with net purchases amounting to 839 billion KRW and 862 billion KRW, respectively.

The exchange rate for the won against the dollar closed at 1,364.4 KRW, marking a decrease of 11.2 KRW from the preceding day.