Seoul Shares Rise for Second Straight Day as Chipmakers Lead Bargain-Hunting Rally
Key Takeaways
- •The KOSPI closed up 0.73 percent at 6,345.53, rising for a second consecutive session as investors engaged in bargain-hunting among semiconductor stocks.
- •Samsung Electronics surged 4.13 percent to 239,500 won, while SK hynix gained 0.35 percent, helping offset broader market caution linked to Middle East conflict.
- •Foreign investors bought a net 445.8 billion won in stocks and institutions added a net 319 billion won, while retail investors sold a net 724.4 billion won.
- •The Korean won strengthened to 1,416 against the US dollar, up 2.4 won from the prior session's close.
- •LG Energy Solution fell 3.54 percent and Hyundai Motor dropped 1.23 percent, reflecting mixed performance among non-chip large-cap stocks.
South Korean equities closed higher for a second consecutive session on Tuesday, driven by bargain-hunting in major semiconductor stocks. The Korean won also strengthened against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 45.87 points, or 0.73 percent, to finish at 6,345.53. The index opened 0.95 percent lower before reversing course as heavyweight chipmakers rallied, though broader market sentiment stayed cautious amid the ongoing conflict in the Middle East. South Korea imports nearly all of its crude oil, much of it sourced from the Middle East and transited through key chokepoints like the Strait of Hormuz, making energy costs a significant variable for Asia's fourth-largest economy.
Trading volume was moderate, with 634.5 million shares valued at 21.59 trillion won ($15.23 billion) changing hands. Gainers outnumbered losers 562 to 308.
Foreign investors purchased a net 445.8 billion won in stocks, and institutions bought a net 319 billion won. Retail investors offloaded a net 724.4 billion won.
"Investors engaged in bargain-hunting on the perception that the recent decline had been excessive," said Lee Kyung-min, an analyst at Daishin Securities.
US markets on Monday edged down from all-time highs set in the prior session, as oil prices climbed on uncertainty over when the Strait of Hormuz might reopen to shipping. The S&P 500 slipped 0.1 percent from its record, the Dow Jones Industrial Average dipped 0.1 percent, and the tech-heavy Nasdaq composite fell 0.3 percent.
In Seoul, large-cap stocks delivered a mixed performance. After opening lower, Samsung Electronics rose 4.13 percent to 239,500 won per share, while rival SK hynix gained 0.35 percent to 1.42 million won. The two companies rank among the world's largest memory chipmakers, and semiconductors are South Korea's single largest export item, making the sector a key driver of the KOSPI.
On the downside, SK Square, the parent company of SK hynix, edged down 0.42 percent to 945,000 won. Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, declined 0.94 percent to 1.26 million won. LG Energy Solution dropped 3.54 percent to 364,500 won, and Hyundai Motor, South Korea's largest automaker, shed 1.23 percent to 403,000 won.
The Korean won was quoted at 1,416 won against the US dollar at 3:30 p.m., up 2.4 won from the previous day's stock market close. (Yonhap)