South Korea’s tech-heavy stock market hit this year’s record high for two consecutive days, topping the 650 mark for the first time in more than seven months on Wednesday.

The benchmark Korean Securities Dealers Automated Quotations closed at 652.04, up 0.46 percent from the previous trading day Tuesday, when it closed at 649.06.

The index for the second-tier market had not surpassed 650 mark since Oct. 21, 2016, when it came to 651.77. After reaching 643.68 on Jan. 6, the figure has hovered at between 610 and 630.

“Surpassing 650 point means (the market) ramped up baseline (for investors),” said Chung Hoon-seok of Korea Investment & Securities. 

Meanwhile, the main bourse index remained nearly flat. The Korea Composite Stock Price Index fell short of recovering losses on Tuesday and Wednesday.

“The run-ups of large stocks on the Kospi is turning investors’ attention away due to their high prices,” said Lee Yeong-gon of Hana Financial Investment. “Small stocks and Kosdaq-listed stocks, in the short run, is gaining attention.”

The Kospi closed at 2347.38, up 0.16 percent from the previous day. After a 5-day record run in the previous week, hitting the ceiling at 2355.3 Friday, the top-tier stock market has continued its 2-day dip.

The latest rally in Kosdaq was mainly backed by robust foreign buying in May.

Foreign investors bought Kosdaq shares worth 525.8 billion won ($471.2 million) from May 2-30, outsizing that of four months from January to April at 370.7 billion won, showed data from market watcher Koscom. Over the cited period, institutional investors sold 456.4 billion won worth of shares and individuals bought shares valued at 95.8 billion won.

For 20 trading days until Tuesday, they flocked to botulinum toxin maker Hugel, buying 63.3 billion won worth of shares and entertainment firm CJ E&M, purchasing shares worth 57.8 billion won. Foreigners also bought 57.4 billion won of shares from Semiconductor machinery maker SFA Engineering and internet services firm Kakao respectively.

Experts pointed out that South Korea is not new to instant buoyancy among tech firms in the first year of the new administration.

“For the first three months of a new government since the Kim Dae-jung administration, the Kosdaq on average rose 7 percent,” wrote Lee Kyoung-min of Daishin Securities in a Wednesday report.

Lee added “the Kosdaq will gain steam” on conditions that the Moon Jae-in administration’s policy underpinning small and medium enterprises materializes.

By Son Ji-hyoung (consnow@heraldcorp.com)