04.02.202601:39:12UTC+00South Korean Shares Extend Gains

On Wednesday, the KOSPI index climbed 0.8% to approximately 5,330, marking continued progress towards record levels. This rise was attributed to ongoing bargain hunting and strategic sector rotation, which bolstered market sentiment. After Tuesday's dramatic selloff and subsequent rebound, investors selectively increased their holdings. Confidence remained strong as the index had previously reached a new high. The market was buoyed by solid performances in the automotive, battery, and industrial sectors, counterbalancing weaknesses in semiconductor and internet stocks that stemmed from persistent concerns about AI-related pressures on global technology shares. Notable gains were observed in Hyundai Motor, rising 2.8%, LG Energy Solution with a 2.3% increase, SK Square climbing 2.9%, and Doosan Enerbility advancing by 4.3%. In contrast, Samsung Electronics and SK Hynix experienced declines of over 1% each. The more balanced sectoral performance indicated a preference for rotation instead of a comprehensive avoidance of risk, enabling the index to maintain its position above the 5,300 mark. Investors maintained their concentration on domestic market momentum, following substantial purchases by institutional and foreign investors in the previous trading session.