Kospi hits annual high as global optimism, tech gains, and strong exports lift investor confidence in South Korea. On Tuesday, the main stock index surged to its highest level this year. The Kospi began the day 0.58 percent higher at 3,089.64. Shortly after, it surpassed 3,130 around 9:35 a.m. Then, by 10:20 a.m., it peaked at 3,133.52—exceeding last week’s record of 3,129.09.
However, momentum faded by afternoon. As a result, the index returned closer to 3,090 before markets closed. Still, Kospi hits annual high remained the headline. Meanwhile, foreign investors resumed net buying after four days of heavy selling. Previously, they had offloaded 2.2 trillion won in stocks. On Tuesday, they purchased over 100 billion won, despite some fluctuations.
Institutional investors fueled most of the rally with 500 billion won in net buying. In contrast, retail investors sold off 650 billion won to lock in gains. The Kosdaq also moved higher, opening at 784.8 and peaking at 788.38. Institutional buyers supported the rally. On the other hand, retail and foreign investors reduced their positions.
In addition, strong Wall Street gains helped boost sentiment. The S&P 500 hit a record 6,207.95. Simultaneously, the Nasdaq rose to 20,369.73, led by tech stocks. Apple climbed 2 percent on continued AI optimism. Moreover, Canada’s move to cancel a proposed digital tax eased global trade tensions. As a result, investors became more confident.
Locally, strong export data added to the optimism. Semiconductor exports reached an all-time high. Auto exports also posted the best June figures ever. Furthermore, expectations for regulatory reform improved the outlook. Lawmakers are debating changes to the Commercial Act this week. These reforms aim to improve corporate governance and support minority shareholders.
According to Lee Jae-won at Shinhan Securities, these changes have raised investor hopes. Even opposition lawmakers are shifting support toward the bill. Han Ji-young at Kiwoom Securities called the recent dip a consolidation phase. He pointed to earnings season and global trade policy as possible growth drivers. Altogether, as Kospi hits annual high again, analysts remain optimistic about more gains in the near future.
