South Korean Shares Extend Record Rally, Close Above 6,300 Mark

Deep News02-26 15:30

South Korean equities surged over 3% on Thursday, closing above the 6,300-point level. The rally was fueled by stronger-than-expected earnings from U.S. company Nvidia, which boosted investor confidence in the artificial intelligence (AI) sector's prospects.

The Korea Composite Stock Price Index (KOSPI) advanced 223.41 points, or 3.67%, finishing at a record high of 6,307.27. This marked the index's sixth consecutive day of gains.

The KOSPI has demonstrated sustained strength since the start of the year, first surpassing the 4,500-point mark on January 6th and breaking through the 5,000-point barrier on January 27th. Less than a month later, the index surpassed the 6,000-point milestone on Wednesday.

Trading volume was heavy on Thursday, reaching 1.4 billion shares, with a total transaction value of 38.5 trillion won (approximately 270 billion USD). Decliners significantly outnumbered advancers, with 659 stocks falling compared to 239 that rose.

Institutional and retail investors were net buyers, purchasing a net 1.24 trillion won and 658.8 billion won worth of shares, respectively. Conversely, foreign investors were net sellers, offloading a net 2.1 trillion won.

Overnight, Nvidia reported fourth-quarter revenue of $68.13 billion, exceeding analyst forecasts. This rekindled optimism regarding the potential benefits of artificial intelligence technology.

Analysts indicated that Nvidia's robust earnings propelled gains in South Korean technology stocks, as Korean chipmakers like Samsung Electronics and SK Hynix are crucial links in the AI supply chain dominated by Nvidia.

"The index was led higher by shares in chips, electrical equipment, and automobiles—sectors involved in the AI supply chain—benefiting from Nvidia's strong earnings report," said Kang Jin-hyuk, an analyst at Shinhan Securities.

Additionally, investors were encouraged by news from the Bank of Korea. The central bank raised its economic growth forecast for South Korea this year by 0.2 percentage points to 2%, citing strong semiconductor exports.

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