KOSPI Bounces Back

The Korea Composite Stock Price Index has bounced above 2,500 points for the first time in eight months.

The KOSPI closed at 2,512.08 on Monday, up 0.87 percent or 21.67 points from the previous trading day. It is the first time that the KOSPI has crossed 2,500 points since Aug. 18 last year. The tech-heavy Kosdaq also rose 0.88 percent or 7.71 points to 887.78 points.

The upward trend was led by foreign investors who snapped up W741 billion worth of stocks (US$1=W1,320). Retail and institutional investors bought W674.5 billion and W28.1 billion worth of stocks.

Samsung Electronics stocks were up 1.1 percent at W65,700, up 1.1 percent after jumping 4.3 percent last Friday, when it announced that it is cutting semiconductor production in an effort to reduce inventory after profits plummeted.

Another factor was expectations that the U.S. Federal Reserve will not hike the interest rate drastically after a slowdown in the job market and signs that inflation is under control.

The forecast also persuaded the Bank of Korea to keep its benchmark interest rate steady at 3.5 percent for the second straight time on Tuesday. The freeze comes even though the gap with U.S. interest rates has widened.