By Seo Jee-yeon
Staff Reporter




Seoul stocks closed the year at their highest levels ever, extending their rally on ample liquidity and raising hopes of further gains next year.
Retail investors took profits, while domestic institutions and foreign investors bought stocks, allowing the main bourse to close at an all-time high.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at an all-time high of 1,379.37 points Thursday, advancing 11.21 points, or 0.82 percent.

The tech-rich Kosdaq index rose 10.53 points or 1.52 percent to close at 701. 79.

``After setting new records, the stock market is ready for a second take-off,’’ Chung Wun-soo of the Korea Exchange said.

The KOSPI gained nearly 54 percent, and Kosdaq rose 83 percent this year.

The Kosdaq market ended the year, becoming the world’s best performer, according to the Korea Exchange. The Kosdaq claimed the second place after Russia as of Dec. 22, but it is expected to have beaten the Russian market after gains in following sessions. The KOSPI was the fourth best performer this year in the world.

The market capitalization of the two stock bourses also soared more than 60 percent to 719 trillion won as of Dec. 28 from 443 trillion won early this year, the world’s 15 largest.

``Low interest rate frenzy for savings-type equity funds and the government’s tightened real estate policy shifted money into the stock market,’’ Chung said.

On the back of abundant liquidity, the KOSPI, which wallowed at around 890 points early this year, has continually ralled over the year since it broke the psychologically important 1,000-point barrier in February.

The Kosdaq market, which started with 383.81 points this year, breached 700 marks in November and climbed a yearly record high of 747.96 on Dec. 6.

Institutional investors were net buyers in both stock markets this year. Their net buying was at 7.5 trillion won in the main stock market, while it amounted to 617 billion won in the Kosdaq market.

Foreign investors remained net seller in the main market, selling 3.1 trillion won in stocks. They were net buyers in the Kosdaq market, buying 656 billion won in shares.

A majority of securities firms predicted the stock rally will continue next year thanks to an absence of negative factors. Meriz Securities and Korea projected the KOSPI could reach 1,600 next year.

jyseo@koreatimes.co.kr