KOSPI Sets New Record for 3rd Consecutive Trading Session
KOSPI rose 0.76 percent and closed at 2,696.22 points on Dec. 3, setting a new record for the third consecutive trading session.
Institutional investors posted a net selling of 286.1 billion won whereas individual and foreign investors’ net buying totaled 228.9 billion won and 62.2 billion won, respectively. Samsung Electronics, SK Hynix, Hyundai Motor and Kia Motors rose 0.29 percent, 2.29 percent, 7.67 percent and 6.41 percent, respectively.
KOSDAQ rose 0.92 percent to close at 907.62. Individual investors recorded a net buy of 134.5 billion won and foreign and institutional investors recorded a net sale of 27.3 billion won and 61.3 billion won, respectively.
The won-dollar exchange rate fell 3.8 won to 1,097 won per U.S. dollar, dipping below 1,100 won for the first time in 30 months.
The fall in exchange rate has to do with the US$908 billion economic stimulus package the U.S. Congress announced the previous day. At present, investors are increasing their preference for risky assets and South Korea’s exports are increasing to attract foreign investment and add downward pressure to the won-dollar exchange rate.
Under the circumstances, non-large South Korean companies’ profitability is deteriorating. Their foreign exchange losses are forecast to increase with a threshold of 1,100 won having been broken. According to experts, the exchange rate may reach 1,060 won to 1,070 won in the first half of the next year although the downtrend can be limited by the forex authorities and investors.