Kospi rebounds to above 2,400 as investors turn upbeat on Korea stocks

Kospi rebounds to above 2,400 as investors turn upbeat on Korea stocks. [Photo by Newsis]

Kospi rebounded to breach the psychologically-important 2,400-mark on Monday for the first time this year and also in a month after the U.S. reported improved consumer spending last week.

Kospi rose 0.8 percent to 2,404.91, as of 1:30 p.m. in Seoul, with foreign investors net purchasing 203.8 billion won ($165 million) worth and institutions 225.9 billion won. Kosdaq, the tech-savvy secondary bourse, also is on the rise, adding 0.7 percent to 717.09 in the early afternoon on Monday.

The last time the country’s benchmark stock index, Kospi, was above 2,400 was on Dec. 14, based on intraday trading.

The Korean currency is also gaining strength. It is trading 0.7 percent higher at 1,233.7 won against the US dollar, as of 1:30 p.m., after opening Monday at 1,238.0 won.

The upward swings are primarily led by the upbeat mood on Wall Street, market analysts said. The Dow Jones Industrial Average, S&P 500 Index and Nasdaq Composite Index all closed higher Friday after major economic indicators showed improvements. The U.S. consumer sentiment index rose to 64.5 in January, the best in eight months.

Among the top 200 firms on the Kospi, based on market capitalization, Samsung Electronics Co. is trading 1.15 percent higher, LG Energy Solution Ltd. 0.21 percent and SK hynix Inc. 0.47 percent in the early afternoon Monday. Internet stocks have added even more, with Naver Corp. trading 2.56 percent higher and Kakao Corp. 4.35 percent.

Stocks on the Kosdaq are also on the rise, with game stocks showing sharp increases. Kakao Games Corp. shares are trading 7.7 percent higher and PearlAbyss Corp. shares 2.41 percent higher.

Foreign investors have net purchased 29.3 billion won worth and institutions 3.3 billion won in the secondary bourse in the early afternoon Monday. Retail investors net sold 8.1 billion won.