SEOUL, February 20 (AJP)- South Korean shares extended their relentless rally in early Friday trading, brushing off global market weakness and rising geopolitical tensions between the United States and Iran.
The benchmark KOSPI surged past the 5,700 mark to set another record high. As of 10:50 a.m., the index was up 1.26 percent at 5,748.65. The tech-heavy KOSDAQ slipped 0.25 percent to 1,157.77.
In regional markets, Hong Kong’s Hang Seng Index opened lower after a holiday break, falling 0.27 percent to 26,633.60 as of 9:31 a.m. local time.
Wall Street retreated overnight as concerns grew over a potential U.S. strike on Iran. With nuclear negotiations between Washington and Tehran showing little progress, reports that the U.S. military had reinforced its assets in the Middle East weighed on investor sentiment. The Dow Jones Industrial Average fell 0.54 percent, the S&P 500 lost 0.28 percent, and the Nasdaq Composite slipped 0.31 percent.
Despite the global pullback, brokerage stocks in Seoul rallied across the board.
SK Securities and Sangsangin Investment & Securities hit fresh 52-week highs, jumping 24.89 percent and 20.94 percent, respectively, as of 10:05 a.m. Other major brokerages also posted strong gains, including NH Investment & Securities (11.29 percent), Daishin Securities (7.16 percent), Mirae Asset Securities (4.11 percent), Samsung Securities (5.65 percent) and Kyobo Securities (8.53 percent).
The rally was driven by rising trading volumes and growing expectations that a revision to the Commercial Act requiring the cancellation of treasury shares will be approved.
The Korean won strengthened slightly, trading at 1,449.40 per dollar, up 1.60 won from the previous session.
Investor flows were mixed. Individual and foreign investors sold a net 79.1 billion won and 430.4 billion won worth of shares, respectively, while institutions bought a net 587.6 billion won.
Among heavyweight stocks, Samsung Electronics and SK hynix slipped 0.16 percent and 0.67 percent to 189,300 won and 888,000 won, respectively. Battery maker LG Energy Solution rose 0.37 percent to 405,000 won.
Meanwhile, nuclear power equipment maker Doosan Enerbility and defense contractor Hanwha Aerospace climbed 6.50 percent and 6.70 percent to 104,800 won and 1,226,000 won, respectively.
Financial and biotech stocks also advanced. Samsung Life Insurance jumped 7.18 percent to 224,000 won, while Samsung Biologics added 0.87 percent to 1,735,000 won.
Automakers showed mixed performance. Hyundai Motor fell 0.78 percent to 509,000 won, while affiliate Kia gained 0.29 percent to 170,500 won.
Shipbuilders were among the gainers. HD Hyundai Heavy Industries jumped 2.61 percent to 589,000 won, and Hanwha Ocean climbed 2.70 percent to 144,400 won.
In Tokyo, Japan’s Nikkei 225 fell 1.17 percent to 56,796.91. China’s Shanghai market is set to resume trading next Tuesday following the holiday break.
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