Key facts
- Seoul shares trimmed earlier gains on Thursday morning due to retail selling.
- Institutions and foreign investors bought chip stocks.
- The KOSPI index was up 2.08 percent to 7,397.40 as of 11:20 a.m.
- Geopolitical tensions in the Middle East and AI demand uncertainty are investor concerns.
- Samsung Electronics and SK hynix saw significant gains.
Seoul shares trimmed earlier gains late Thursday morning as retail investors sold off stocks, although institutional and foreign buyers stepped in to purchase bargain-priced chip shares following a recent sell-off. The benchmark Korea Composite Stock Price Index (KOSPI) erased its initial 3.3 percent opening gain, moving up 150.61 points, or 2.08 percent, to 7,397.40 as of 11:20 a.m.
Analysts noted that investor sentiment remains cautious due to renewed geopolitical tensions in the Middle East and uncertainty surrounding the future demand for artificial intelligence (AI) technologies. Overnight, U.S. stock markets presented a mixed picture, with the Dow Jones Industrial Average declining by 1.09 percent while the tech-heavy Nasdaq Composite saw a modest rise of 0.2 percent.
In terms of trading activity, institutions and foreigners were net buyers, acquiring stocks worth 985.8 billion won and 144.9 billion won, respectively. Conversely, individual investors sold a net 1.07 trillion won worth of shares.
Technology stocks led the market's gains. Market bellwether Samsung Electronics increased by 1.8 percent, and chip giant SK hynix surged by 6.65 percent, reportedly buoyed by strong demand for its U.S. listing. Leading wireless services provider SK Telecom also climbed 4.52 percent, and budget carrier Air Busan gained 7.5 percent.
However, some major companies experienced declines. Top automaker Hyundai Motor fell 2.38 percent, and defense firm Hanwha Aerospace dropped 6.72 percent.
The Korean won was trading at 1,504.65 won against the U.S. dollar as of 11:20 a.m., marking a depreciation of 2.25 won from the previous trading session.