Seoul's stock market set a new record high on January 8 driven by strong defense and shipbuilding stocks, then dipped early on January 9 before rebounding later in the morning. The KOSPI index closed at 4,552.37 on the 8th, its all-time high, and rose 0.3 percent to 4,565.88 by 11:20 a.m. on the 9th. Institutional and individual buying offset foreign selling to support the market.
Seoul's stock market extended its rally for a fifth straight session on January 8, setting a fresh record high despite profit-taking in technology, defense, and shipbuilding stocks. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.31 points, or 0.03 percent, to close at 4,552.37. It hit an intraday high of 4,610.93 during the session. Trading volume was moderate at 429.55 million shares worth 26.76 trillion won (US$18.4 billion), with losers outnumbering gainers 728 to 175.
Retail investors net bought 1.26 trillion won of stocks, offsetting net selling by institutions (1.39 trillion won) and foreigners (103.28 billion won). Foreigners turned net sellers after purchasing 1.25 trillion won the previous day.
Shipbuilding and defense stocks led the gains. Leading shipbuilder HD Hyundai Heavy Industries jumped 4.49 percent to 582,000 won, while defense giant Hanwha Aerospace soared 7.92 percent to 1.09 million won. Korea Aerospace Industries advanced 4.92 percent to 142,800 won.
Among decliners, market bellwether Samsung Electronics fell 1.56 percent to 138,800 won, despite a record fourth-quarter earnings projection, and top automaker Hyundai Motor declined 2.85 percent to 340,500 won.
"The latest tech rally is expected to continue for the time being on strong chip demand amid an artificial intelligence boom," said Na Jeong-won, an analyst at NH Securities Co. "Defense, shipbuilding and securities stocks are also expected to support the main index due to their strong earnings outlook."
On January 9, shares opened lower as investors took profits, with the KOSPI falling 0.54 percent to 4,527.67 in the first 15 minutes. However, it turned higher late morning, up 0.3 percent to 4,565.88 by 11:20 a.m., driven by defense and shipbuilding gains. Hanwha Aerospace jumped 7.61 percent, HD Hyundai Heavy Industries rose 2.92 percent, Korea Aerospace Industries soared 4.41 percent, and Hyundai Motor advanced 3.08 percent. Samsung Electronics edged down 0.07 percent after an early 2.02 percent drop.
The local currency traded at 1,454.80 won against the U.S. dollar, down 4.2 won. Analysts said the KOSPI could surpass 4,600 points depending on fourth-quarter earnings.
