The benchmark Korea Composite Stock Price Index(KOSPI) closed above the two-thousand-500 threshold for the first time ever on Monday.
Many experts predict the KOSPI will continue its rally through the end of the year, while some say it could possibly surpass 26-hundred.
The KOSPI gained five-point-30 points, or point-21 percent, to close Monday at two-thousand-501-point-93.
The index had reached the 25-hundred mark five days earlier during trading, but it was the first time it closed the day above this threshold.
It continued to rise through Wednesday, when it closed the day at two-thousand-556-point-47 to break its record high for a fourth consecutive session, before falling point-40 percent by Thursday’s close.
The milestone comes ten years since the KOSPI topped two thousand in July 2007.
Market capitalization has grown by 2.2 fold over the past decade to 1.6 quadrillion won as of Monday.
The KOSPI was launched in 1983. It reached the 500 mark in 1987 and the one thousand threshold in 1989. Then it took 18 long years to reach 15-hundred in April 2007 but just three months to climb to two thousand in July that year.
A tedious fluctuation period again followed. But global stock prices turned upwards since late last year to help realize a new high for the KOSPI after another ten years.
The recent rally is led by foreign investors and is mainly backed by brisk exports and improved corporate earnings.
But domestic share prices are still believed to not have risen in proportion to the corporate bottom line and remain undervalued. This raises forecasts that the bullish trend will continue.
Most experts believe the 25-hundred era is here to stay, with gains continuing through this year.
Corporate results have increased by 50 percent but stock prices have yet to reach this level. Analysts say this will enable a steady inflow of foreign funds, raising the possibility of the KOSPI reaching the 26-hundred mark.
But of course there are variables, such as U.S. tax reform and an expected rate hike by the Federal Reserve in December.