The Kospi climbed as much as 0.7% yesterday, buoyed by shares of tech stocks. — Bloomberg
SEOUL: South Korea’s stock benchmark headed for its highest closing level since May 2022 amid a rally boosted by foreign inflows into the nation’s heavyweight chipmakers.
The Kospi climbed as much as 0.7% yesterday, buoyed by shares of tech stocks, with Samsung Electronics Co among the biggest drivers of the measure’s gains.
Overall, global funds pumped about US$10.7bil on a net basis into South Korean equities last year, the most since 2012, amid demand for chipmakers.
The Kospi’s milestone comes after the nation banned short selling in local equities last November, with the gauge having gained more than 10% since the prohibition was imposed.
Authorities are seeking to root out naked short selling – a practice of selling shares without even borrowing them first – which is illegal in South Korea.
The tech-heavy emerging market has also benefited from improving global risk appetite as bets rise for the Federal Reserve to cut interest rates in 2024. Robust earnings growth for chipmakers is expected to drive the Kospi higher this year. — Bloomberg
