December 04, 2024

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[THE INVESTOR] South Korea‘s main bourse-based index reached another all-time high Monday, on eased global uncertainties after the resounding victory of French centrist presidential candidate Emmanuel Macron, as well as rising expectations of improved consumer sentiment on the verge of South Korea’s presidential election. 

The benchmark KOSPI soared to 2,267.72, up 1.18 percent, or 26.48 points, at 2:30 p.m., breaking the record set on the previous trading day on May 4 of 2,241.24.

Riding the upward momentum, the nation's main bourse closed at 2,292.76, a new record-high.  

Foreign investors’ strong buying powered the rally. The volume of buying reached 356.2 billion won ($314.9 million) at around 2:30 p.m., while institutional investors sold 149.7 billion won and individual investors sold 246.5 billion won in total then.

Market giant Samsung Electronics continued its nine-trading day winning streak. The bellwether rose 34,000 won, or 1.49 percent, to 2.31 million won, setting another record high as of 2:30 p.m. 

This came in light of world market rallies after Macron clinched a resounding victory against far-right and anti-European Union Marine Le Pen in the French presidential election Sunday.

“The uncertainties surrounding France’s possible departure from the EU are gone,” wrote Ma Ju-ok, an analyst at Hanwha Investment & Securities, in a Monday report. “The lowered possibility of the eurozone ruckus will invite investors to high-risk assets in global financial market.”

Another analyst pointed to the growing anticipation for improved consumer sentiment, as South Korea’s presidential election, where liberal candidate Moon Jae-in was standing atop polls, is drawing near.

“The election is likely to lift consumer sentiment and anticipation for the new administration,” said analyst Lee Sang-hun at Hi Investment & Securities in a report. “These would boost a policy drive on small and medium enterprises and the Fourth Industrial Revolution, which would enhance the domestic economy.”

The local currency had strengthened by 4.5 won, or 0.4 percent, to 1,132 won against the dollar, as of 2 p.m. Monday.

By Son Ji-hyoung (consnow@heraldcorp.com)