[VIEWPOINT]End-of-Week Surge Provides Foundation

It has been a long time since the Korea Composite Stock Price Index, or Kospi, had gains for two consecutive sessions. The last time the Kospi had two consecutive positive sessions was June 29. The Kospi increased to 529.22 points, up by 3.14 points or 0.59 percent Thursday while the index surged by 11.91 points or 2.25 percent Friday and ended at 541.13 points.

On Friday, 54.2 billion won ($41.3 million) net-buying by foreign investors in the main bourse and the U.S. Nasdaq's recovery of the 2,000-point level helped the Kospi to maintain its upward movement. More than 395 million shares worth 1.32 trillion won were traded on Friday. In the Korea Stock Exchange, 699 issues advanced, while 120 issues declined. Almost every industry increased Friday, led by telecommunications, medical supplies and insurance shares, while construction and securities shares slowed down their upward movements.

Although the semiconductor sector led the Korean industrial output to drop by 2.7 percent in June, chipmakers' shares showed some upward momentum in the Korean stock markets. Samsung Electronics rose for four consecutive sessions. On Friday, Samsung Electronics was up 2.2 percent, or 185,500 won. Hynix Semiconductor also had a big surge Friday by gaining 12.8 percent and ended the session at 1,365 won. Korea First Bank's move to offer additional financial support to Hynix Semiconductor and the big surge in the Philadelphia Semiconductor Index pushed the Hynix share upward.

Samsung Electronics, Korea Telecom and H&CB topped the foreign investor's buying list in the exchange, while the foreign investors sold Korea Electric Power and Samsung Heavy Industries. Institutional investors' top-buying list included Shinhan Bank, Korea Electricity and SK Coporation, while the institutional investors sold Samsung Electronics and Dae Duk Electronics.

While the Kospi enjoyed an impressive rally Friday, the Kosdaq also finished higher for the second consecutive session on Friday. The Kosdaq closed at 67.46 points, gaining 2.22 points or 3.40 percent and 352.4 million shares worth 1.21 trillion won were traded on Friday. As foreign and individual investors' net buying in the Kosdaq maintained the upward movement, 541 issues advanced and only 65 issues declined.

Foreign investors were net-buyers for 2.5 billion won, while individual investors were net-buying for 1.4 billion won on Friday. In the Kosdaq, semiconductor-related shares also showed positive momentums in parts by big surges by semiconductor and telecommunication related shares in the U.S. stock markets.

Many of the semiconductor-related shares in the Kosdaq market increased to their daily ceilings. KT Freetel, which has the biggest market value in the Kosdaq, surged more than 6 percent from the expectations of high net profit for the first half. The top 13 shares on the Kosdaq all advanced Friday. Hanol, which went through stringent correction period due to its past big surge from restructuring plan, went up to its daily ceiling. Other shares with outstanding financial performances also strongly advanced on Friday. Young Industries with 50 per cent higher revenues year-over-year also advanced to its daily ceiling.