On the 22nd, the KOSPI index broke through the 5,000-point mark, once called the "dream index," during trading, then digested profit-taking and finished at the 4,950 level. Although it finished at the 4,950 level after digesting late-session profit-taking, simply breaking the psychological Maginot line of 5,000 proved that the paradigm of the domestic stock market has shifted.
The KOSDAQ index also surged nearly 2% on gains led by secondary battery stocks, reclaiming the 970 level after two trading days.
On the day, the KOSPI index closed at 4,952.53, up 42.60 points (0.87%) from the previous trading day. Right after the open, the KOSPI achieved "Ocheonpi" (KOSPI 5000) for the first time in domestic stock market history and soared to as high as 5,019.54 points. It came just three months after surpassing the 4,000 level at the end of Oct. last year.
In the afternoon, profit-taking poured in, centered on large caps that had jumped, pushing the index back to the 4,950 level, but it still set another record closing high, following the previous day.
Samsung Electronics jumped more than 2% early in the session to hit an all-time high of 160,000 won, then gave back a bit to finish at 152,300 won (1.87%). SK hynix topped 780,000 won before closing at 755,000 won (2.03%). Hyundai Motor surged more than 8% early on before turning lower.
In the main board, individual investors bought a net 152 billion won of stocks, lifting the index. Foreigners and institutions were net sellers of 293.7 billion won and 102.7 billion won, respectively.
Investor sentiment improved largely on the sharp rebound in U.S. stocks after U.S. President Donald Trump said overnight that he would not use force over the Greenland annexation issue and withdrew the tariff he was to impose on eight European countries. Added to that were the government's strong will to support the market and the buying by pension funds, which, analysts said, swiftly resolved the "Korea discount" that had left the domestic stock market undervalued.
Among other top-cap stocks, LG Energy Solution rose 5.70% and SK Square 3.84%. In contrast, Samsung Biologics (-5.07%), Kia (-4.36%), HD Hyundai Heavy Industries (-2.85%), and Hanwha Aerospace (-1.98%) were weak.
Cho Su-hong, head of research at NH Investment & Securities, said, "The visibility of profits at corporations related to artificial intelligence (AI) infrastructure and the expansion of shareholder returns starting with amendments to the Commercial Act acted as key factors in achieving KOSPI 5000," adding, "It is judged that we have entered the beginning of an advanced capital market."
On the day, the KOSDAQ index finished at 970.35, up 19.06 points (2.00%) from the previous trading day.
A rebound in some biotech stocks that had plunged the previous day and a surge in secondary battery names led KOSDAQ strength. In the KOSDAQ market, individuals and foreigners were net buyers of 101.7 billion won and 67.2 billion won, while institutions were net sellers of 137.9 billion won.
Among top KOSDAQ caps, Sam Chun Dang Pharm (12.83%), Peptron (12.18%), EcoPro (10.41%), Kolon TissueGene (8.06%), EcoPro BM (7.68%), HLB (5.98%), ABL Bio (1.41%), and LigaChem Biosciences (0.82%) rose. Rainbow Robotics and Alteogen fell 2.53% and 0.94%, respectively.
Lee Jae-won, an analyst at Shinhan Investment & Securities, said, "Because the Trump-triggered geopolitical conflict wrapped up quickly as 'TACO' (Trump Always Chickens Out: Trump always gets scared and runs away), investors should focus on earnings rather than short-term external noise," adding, "Policy support will also continue."