KOSPI Closes Above 3,800 for the First Time Ever... 'KOSPI 4,000' Within Reach [fn Closing Market Report]

[Financial News] The KOSPI closed at 3,814, setting a new all-time high. Investor sentiment was buoyed by expectations of easing U.S.-China trade conflict and reduced credit risk. According to the Korea Exchange (KRX) on the 20th, the KOSPI finished trading at 3,814.69, up 65.80 points (1.76%) from the previous session, marking a new record high. It took only two trading days to break through the 3,800 mark after first surpassing 3,700 (3,748.37) on the 16th.
Institutional investors led the KOSPI's rise on this day. In the KOSPI Market, institutions bought 543.2 billion won worth of stocks, while individuals and foreign investors posted net sales of 362.1 billion won and 216.4 billion won, respectively.
Last weekend, the U.S. stock market ended higher. Despite concerns over the financial health of regional banks, there was a prevailing view that the issue would not escalate into a systemic risk. Additionally, remarks by U.S. President Donald Trump about an imminent meeting with President Xi Jinping fueled hopes for easing U.S.-China trade conflict.
Seonghun Lee, a researcher at KIWOOM Securities, stated, "The likelihood of recent losses on loan assets at some U.S. regional banks spreading into systemic risk is low." He added, "This week’s scheduled release of the September Consumer Price Index (CPI) will help gauge whether the Fed’s strong rate-cutting narrative can continue."
As a result, the KOSPI succeeded in breaking through the 3,800 mark for the first time ever. Although some profit-taking emerged early in the session due to concerns over the recent string of record highs, expectations for easing U.S.-China trade tensions offset these pressures, leading to a rebound in the afternoon.
By sector, securities (up 10.61%), finance (up 3.27%), and transportation equipment and parts (up 2.46%) showed strong gains. As the KOSPI broke through 3,800, expectations for improved earnings at securities firms surged, causing major securities stocks to close sharply higher. On the day, Mirae Asset Securities (up 17.17%), Korea Investment Holdings (up 14.02%), and KIWOOM Securities (up 12.1%) each jumped more than 10% in a single session.
The Korean Securities Dealers Automated Quotations (KOSDAQ) index also climbed nearly 2%, closing at 876.15, up 16.61 points (1.93%) from the previous session. In the KOSDAQ market, foreign and institutional investors purchased 146.1 billion won and 60.7 billion won worth of stocks, respectively, while individuals sold 199.2 billion won to realize profits.

nodelay@fnnews.com Jiyeon Park Reporter