Stock market cap surpasses 3 quadrillion won as indexes rally on gov't support

Korea’s stock market capitalization surpassed 3 quadrillion won ($2.19 trillion) for the first time on Thursday, driven by a sharp rally in the main Kospi index and mounting expectations for government-led market support.

A screen in the Korea Exchange offices in Yeouido, western Seoul, shows the Kospi closing at 3,183.23 on July 10, up 49.49 points, or 1.58 percent, from the previous session. [KIM SEONG-RYONG]

Korea’s stock market capitalization surpassed 3 quadrillion won ($2.19 trillion) for the first time on Thursday, driven by a sharp rally in the main Kospi index and mounting expectations for government-led market support.

The combined market cap of local stocks reached 3.02 quadrillion won on Thursday, according to the Korea Exchange. The benchmark Kospi accounted for 2.6 quadrillion won, while the Kosdaq added 413.86 trillion won. The small- and medium-sized enterprise index, the Konex, contributed another 3.17 trillion won.

The Kospi’s surge was the biggest driver behind the milestone.

The bourse jumped 1.58 percent, or 49.49 points, to close at 3,183.23, its highest level since September 7, 2021, when it ended at 3,187.42. It also extended gains after breaking this year’s previous high of 3,133.74 just a day earlier.

Trade volume was moderate at 589.8 million shares worth 14 trillion won.

Foreign investors and institutions reversed early selling to become net buyers during the session, picking up 449 billion won and 46 billion won in shares, respectively, helping propel the index higher.

Among large-cap stocks, Samsung Electronics rebounded 0.99 percent after five sessions of decline, while SK hynix soared 5.69 percent to reclaim the 290,000 won mark. Naver, the No. 1 internet platform company, increased 2.17 percent to 259,500 won, and its rival Kakao climbed 0.5 percent to 60,800 won.

Pharmaceutical stocks also finished in positive territory, with industry leader Samsung Biologics surging 6.09 percent to 1,080,000 won, while SK biopharm advanced 5.54 percent to 99,000 won.

Samyang Foods, best known for its global hit Buldak spicy ramyeon, added 1.28 percent to reach a record 1,498,000 won.

The Kosdaq rose 0.93 percent to 797.7, inching closer to the 800-point threshold.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,183.23 points on July 10, up 49.49 points, or 1.58 percent, from the previous trading session. [NEWS1]

Since last month alone, the Kospi has surged 18 percent. Investors have pinned hopes on fresh stimulus measures from the new administration aimed at revitalizing the market.

The increased number of listed shares also contributed. Shares listed on the domestic market totaled 120.48 billion, up 0.94 percent from the end of last year.

Brokerages have rushed to lift their forecasts for the Kospi.

IBK Securities raised its year-end target to 3,400 from 3,100, while Korea Investment & Securities bumped up its estimate to 3,550 from 3,150.

“We factored in the government’s policies to boost the stock market and stronger investor sentiment,” said Kim Dae-jun, an analyst at Korea Investment & Securities.

Hana Securities offered the most bullish outlook yet, suggesting the Kospi could climb to 4,000.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY HWANG EUI-YOUNG [kim.juyeon2@joongang.co.kr]