The Korea Composite Stock Price Index (KOSPI) finished up 0.6 percent at 1,947.04 points, its highest closing level since October 18. Samsung Electronics, which accounts for an about a fifth of the KOSPI market value, ended up 1.8 percent at a record-high 1,455,000 Korean won ($1,300) after the electronics giant promoted Jay Y. Lee, the heir of the company chairman, to vice chairman on Wednesday.
Analysts and fund managers said Samsung's record-high share price was driven by growing expectations of its smartphone sales rather than the appointment. "Samsung shares have been strong recently as earnings forecasts have improved. Asian stocks also gained ground today, led by China, which helped send Samsung shares higher," said Ahn Sung-ho, a technology analyst at Hanwha Securities. "I am not that interested in Lee's promotion. A succession has been in the works and it goes all as planned," said Ahn Young-hoe, a fund manager at KTB Asset Management.
Financials rebounded after declines on Tuesday, with KB Financial Group up 1.1 percent and Woori Finance Corp climbing 1.2 percent Among smaller-cap stocks, Neowiz Corp and its affiliate Neowiz Games Corp plunged by the daily limit of 15 percent after a media report said their major shareholder Electronic Arts plans to dispose of the entire 27.35 percent stake the US game publisher has in the two South Korean companies. Foreign investors were net buyers of KOSPI shares for a fifth consecutive session, propping up the index. Decliners outnumbered gaining shares 444 to 365. The KOSPI 200 benchmark of core stocks rose 0.7 percent, while the junior KOSDAQ fell 1.2 percent.