SEOUL, January 22 (AJP) -Korean stock market pushed deeper into uncharted territory Thursday, with the KOSPI briefly climbing over the 5,000 mark before closing just below the milestone, a historic high unfolding even as economic growth remains stuck near 1 percent, highlighting a widening gap between buoyant asset prices and a fragile real economy.
The growth outlook marks the weakest performance since the economy contracted 0.7 percent in 2020 during the height of the COVID-19 pandemic, and the lowest growth rate on record outside the pandemic period since GDP data collection began in 1954.
The benchmark KOSPI rose 0.9 percent to finish at 4,952.5 after hitting a historic high of 5,019.54, extending its rally and reinforcing views that the market is entering a higher valuation regime. The KOSPI 200 gained 1.03 percent to 722.3, reflecting renewed demand for heavyweight stocks, even as trading showed clear signs of sector rotation rather than broad-based risk-taking.
On the main board, foreign investors and institutions were major sellers, offloading 297.2 billion won ($202 million) and 102.8 billion won, respectively, while retail investors bought in 155.6 billion won.
Investors increasingly view the advance toward — and brief move above — 5,000 as more than a liquidity-driven rally. Expectations of improved corporate governance following revisions to commercial law, a recovery in the semiconductor cycle and ample liquidity have helped lift the market’s valuation range. Hopes that long-standing governance concerns could be addressed have also fueled expectations of a narrowing “Korea discount,” drawing sustained interest toward large-cap stocks.
Gains were led by technology and electronics shares. Samsung SDI surged 18.7 percent to 384,500 won, lifting the broader electrical equipment sector by 8.4 percent. Semiconductor heavyweights also advanced, with Samsung Electronics rising 1.9 percent to 152,300 won and SK hynix gaining 2.03 percent to 755,000 won. Internet stocks outperformed as well, with NAVER up 2.9 percent at 245,500 won.
Not all sectors participated. Automakers and heavy industry shares lagged, with Hyundai Motor falling 3.6 percent to 529,000 won. Energy and shipbuilding names also weakened, as Doosan Enerbility slipped 1.42 percent to 90,000 won and Hanwha Ocean dropped 2.7 percent to 137,700 won.
In the secondary market, the KOSDAQ outperformed. The index climbed 2.0 percent to 970.4, supported by individual and selective foreign buying. Foreign investors purchased a net 66.1 billion won worth of shares, while institutions sold 138.6 billion won and retail investors added 104.6 billion won, underscoring continued appetite for growth-oriented names despite elevated volatility.
Currency exchange rate and bonds sent mixed signals. The won weakened slightly, with the dollar closing at 1,469.6 won, up 1.9 won, or 0.13 percent. Government bond yields edged lower, with the 10-year yield around 3.06 percent and the 3-year at about 2.98 percent, reflecting lingering expectations for future rate cuts alongside a cautious growth outlook.
Elsewhere in Asia, Japan’s Nikkei 225 climbed 1.73 percent after U.S. President Donald Trump said Washington would not proceed with additional tariffs linked to Greenland-related trade disputes, easing risk aversion.
Copyright ⓒ Aju Press All rights reserved.
