An analysis found that after the Kospi hit an all-time high in the past, stock prices continued to rise more than 6%.
According to the Korea Exchange on the 12th, the previous day the Kospi closed at 3,344.20, up 29.67 points (0.90%) from the prior session. The Kospi opened at 3,336.60, up 22.07 points (0.67%) from the previous session, and surged intraday to 3,344.70, setting a new all-time high for the second straight day.
Korea Investment & Securities said, "This is the fourth time in the past 20 years that an all-time high has been set," and added, "Looking at the three past cases, there were brief pauses like in 2011, but ultimately further gains were recorded." The analysis said that after reaching the previous peak, the Kospi rose an additional 6%, 16%, and 27%, respectively.
The additional rise was led by the existing leading sectors. Looking at the trend after the three previous all-time highs, the sectors that led the rally had a high probability of remaining strong afterward. There were cases where less-risen sectors became the leaders of the subsequent advance, but statistically the sectors that had been at the top in terms of returns maintained their position.
Korea Investment & Securities said, "In that the leaders do not easily break, it can be interpreted that the uptrend of corporations with strong momentum can continue," and added, "Rather than valuation appeal, attention should continue to focus on corporations with strong momentum both on the share price side and on the earnings side."