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South Korea’s benchmark Kospi is edging towards new heights after being boxed in 3,000-3,100 for the past three months amid renewed foreign and institutional buying.

The Kospi traded above 3,210.24 on Monday morning, passing the last peak of 3,208.99 on Jan. 25. It closed the day up 0.01 percent at 3,198.84.

Foreigners have shifted to net buying position after a selloff throughout the first quarter, purchasing a net 2.9 trillion won ($2.6 billion) so far this month.

National Pension Service, scorned by retailers for weighing down the Kospi with their selling spree, also turned to net buying since Friday.

Since retailers have stayed committed by buying another net 549.7 billion won worth this month, another breakthrough in the Kospi may be possible, market watchers noted.


The Kospi has stagnated after breaking above 3,000 in January with an uninterrupted run since March last year amid foreign capital pullout on renewed taper tantrum from faster-than-expected economic recovery in the U.S.

Foreign funds have returned to emerging markets upon easing in the tantrum as the long-term U.S. bonds yields have stabilized with the Federal Reserve’s assurance on an accommodative monetary policy, said Jung Yong-taik, head of IBK Securities research center.

The secondary Kosdaq has also passed the 1,000 milestone and finished Monday at record high of 1,029.46. It rose near 7 percent this month.

Normalization in global commerce thanks to vaccine rollouts would bode well for earnings.

According to local financial data tracker FnGuide, analysts project the bottom line of the Kospi-listed companies to more than double this year from last year.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]