South Korean shares notched an all-time high on Wednesday, fanned by gains at Samsung Electronics and other chip makers as investors bet earnings in the sector would improve from the third quarter.
However, analysts said shares could fall on Thursday after stock index compiler FTSE said after the market close that it had decided against upgrading South Korea to developed market status from its current advanced emerging market designation. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.09 percent to close at a record 1,170.77. The index has risen 9.2 percent so far this month, the biggest gain among major regional markets.
Samsung Electronics Co Ltd, the world's biggest maker of memory chips, rose 1.16 percent to end at 613,000 won, bringing the stock's gains over the past 12 sessions to 13.5 percent.
Growing demand for NAND-type flash memory chips, especially after Apple Computer Inc's unveiled a new iPod MP3 player last week, and a steady recovery in DRAM memory chip prices were seen enhancing earnings potential in the sector, analysts said.
Citigroup raised its 12-month share target price on Samsung Electronics, citing expectations for a steady turnaround in earnings starting in the July-September quarter. Trade volume reached around 526 million shares worth 4 trillion won compared to 379.8 million shares worth 3.5 trillion won on Tuesday. Gainers edged out decliners by 431 to 312 with 73 titles ending flat.
Foreign investors sold a net 172.9 billion won in shares on the main bourse, while retail investors sold a net 5.5 billion won. Institutional investors bought a net 147.7 billion won. The December KOSPI 200 futures index rose 2.10 points to 152.25 and the underlying KOSPI 200 spot index added 1.74 points to 152.03. South Korea's junior and tech heavy Kosdaq market rose 0.31 percent to finish at 529.64.
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