Key facts
- South Korean stocks closed higher for the second straight session on Tuesday.
- The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.73% to 6,345.53.
- Bargain-hunting in major chipmakers drove the gains.
- Samsung Electronics and SK hynix saw significant increases.
- The Korean won gained ground against the U.S. dollar.
- Bond yields increased.
South Korean stocks concluded Tuesday's trading session with gains for the second consecutive day, primarily fueled by investor interest in major chipmakers. The benchmark Korea Composite Stock Price Index (KOSPI) saw an increase of 45.87 points, or 0.73%, to settle at 6,345.53.
Despite an initial dip at the market open, the KOSPI reversed course as key semiconductor companies experienced a surge. This upward movement occurred against a backdrop of cautious market sentiment, influenced by the ongoing conflict in the Middle East. Trading volume was moderate, with 634.5 million shares valued at 21.59 trillion won (US$15.23 billion) changing hands. Gainers outnumbered decliners, with 562 stocks rising and 308 falling.
Foreign and institutional investors were net buyers, acquiring stocks worth 445.8 billion won and 319 billion won, respectively. Conversely, retail investors offloaded a net 724.4 billion won worth of shares. Analysts attributed the buying activity to bargain-hunting, with investors perceiving recent declines as excessive. The U.S. stock market had edged down from its record high on Monday, influenced by rising oil prices and uncertainty surrounding the Strait of Hormuz.
In Seoul, large-cap stocks presented a mixed performance. Semiconductor giant Samsung Electronics climbed 4.13% to 239,500 won per share, and its competitor SK hynix rose 0.35% to 1.42 million won. However, SK Square, the parent company of SK hynix, saw its stock edge down 0.42% to 945,000 won. Samsung Electro-Mechanics, an affiliate of Samsung Electronics, lost 0.94% to close at 1.26 million won. LG Energy Solution declined 3.54% to 364,500 won, and leading automaker Hyundai Motor shed 1.23% to 403,000 won.
The Korean won appreciated against the U.S. dollar, trading at 1,416 won per dollar at the close of stock trading. Bond prices closed lower, indicating rising yields. The yield on three-year Treasurys increased by 3 basis points to 3.808%, and the yield on benchmark five-year government bonds rose by 4.8 basis points to 4.042%.