- The Kospi index rose 2.01%% from the previous session after breaking above its all-time intraday high.
- Goldman Sachs and JPMorgan said the Kospi could top 8,000 and reach as high as 8,500, respectively.
- Foreign and institutional investors were net buyers, SK Hynix rose to a record 1.2 million won, and the won strengthened against the dollar.
Forecast Trend Report by Period
Kospi rises above 6,350 in intraday trading
SK Hynix extends record rally above 1.2 million won
JPMorgan sees Kospi reaching 8,500
South Korea’s Kospi recovered to its prewar level despite uncertainty over a second round of U.S.-Iran ceasefire talks and then climbed to a record intraday high.
As of 9:25 a.m. on April 21, the benchmark Kospi was up 124.79 points, or 2.01%, at 6,343.88 from the previous session. Earlier in the session, it rose as much as 2.19% to 6,355.39, surpassing its previous intraday high of 6,347.41 set on Feb. 27.
Investor sentiment remained resilient despite lingering uncertainty over a second round of U.S.-Iran talks aimed at ending the war.
Goldman Sachs said in a report a day earlier that the Kospi could top 8,000 within the next year. The bank said its forecast implied a 220% increase in Kospi earnings this year and that the index had further room to rise, given that past peaks were reached at an average price-to-earnings ratio of about 10 times.
JPMorgan set an even higher target of 8,500. The bank said the Kospi could reach 7,000 on earnings improvement led by semiconductors, with a semiconductor-driven bull market potentially pushing the index to 8,500.
Foreign investors and institutions were net buyers of 493.7 billion won and 185.8 billion won, respectively, on the main Kospi market at that time. Retail investors were net sellers of 662 billion won.
Large-cap Kospi stocks were broadly higher. Samsung Electronics rose 1.86% and SK Hynix gained 3.86%. SK Hynix climbed above 1.2 million won during the session, extending its record-setting rally.
Hyundai Motor rose 1.71%, LG Energy Solution gained 1.98%, SK Square added 2.71%, Samsung Biologics advanced 0.12%, Hanwha Aerospace climbed 0.49%, Doosan Enerbility rose 3.51%, Kia gained 1.14% and KB Financial Group added 0.68%.
The Kosdaq also traded slightly higher. As of that time, the index was up 0.13% at 1,176.35. On the Kosdaq, retail and institutional investors were net buyers of 274.2 billion won and 7.9 billion won, respectively, while foreign investors were net sellers of 268.1 billion won.
Most of the Kosdaq’s biggest stocks also advanced. Ecopro rose 1.61%, Ecopro BM gained 0.95%, Alteogen added 0.94%, Rainbow Robotics climbed 0.66% and Samchundang Pharm rose 3.56%.
The won opened stronger against the dollar. In Seoul trading, the won-dollar exchange rate opened at 1,472.40 won per dollar, down 4.8 won from the previous session, and widened its decline to 1,471.50 won in early trading.
Lee Su, Hankyung.com reporter, 2su@hankyung.com