South Korea’s main stock index broke out of its dreary six-year-long boxed range to hit historic high on heated foreign appetite for Korean stocks amid eased geopolitical risks and political instability and stellar performances of Korean exporters.

The benchmark Korea Composite Stock Price Index (Kospi) closed at 2,241.24, up 21.57 points or 0.97 percent from the previous trading day, breaking its previous record high close of 2,231.47 set on April 27, 2011. The main bourse was pushed up by foreign investors who net purchased 361.3 billion won ($319 million) worth of shares. Retail investors took profits by net selling 70.8 billion won and institutional investors 333.6 billion won worth.

Market heavyweight Samsung Electronics Co. gained 1.38 percent to fresh record high of 2,276,000 won, and another chipmaking favorite SK Hynix Inc. added 0.9 percent to 55,900 won. Korea’s largest automaker Hyundai Motor Co. also gained 0.66 percent to close at 152,000 won.

Financial shares including Shinhan Financial Group Co., KB Financial Group Inc., and Hana Financial Group Inc. were also strong after they reported their highest-ever first-quarter earnings last month.

Shares were also up on robust earnings reports by other local firms for the January-March period.

According to Seoul-based market data provider FnGuide, 83 of 200 Kospi-listed firms have announced their first quarter earnings, and of 73 firms with market estimates, 46 companies fared better in their operating income. FnGuide data showed that 27 firms reported 10 percent or higher operating profit than what had been expected by the market while 16 firms 20 percent or higher.

Korean shares were also boosted on news that the United States Federal Reserve kept its interest rates unchanged on Wednesday, noting solid job gains and a decline in unemployment rate.

Korea’s tech-heavy Kosdaq closed at 635.11, up 8.68 points or 1.39 percent.

By Han Ye-kyung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]