Key facts
- South Korean stocks ended higher on Monday, breaking a two-day losing streak.
- The KOSPI index closed at 6,299.66, up 0.65 percent.
- Bargain hunting in chip-related shares supported the market.
- Foreign investors were net sellers of stocks.
- The Korean won weakened against the U.S. dollar.
Seoul shares concluded Monday's trading session with a modest increase, successfully halting a two-day decline. The benchmark Korea Composite Stock Price Index (KOSPI) advanced by 40.89 points, or 0.65 percent, to settle at 6,299.66 after a volatile trading period. The index had opened higher and experienced a significant surge of up to 2.16 percent in early trading before retracing some gains. Heavy selling by foreign investors later in the session led to a more sideways movement.
Market activity saw 629.9 million shares traded for 29.09 trillion won (US$20.51 billion), with a larger number of advancing stocks (695) compared to declining ones (183). Foreign investors offloaded a net 1.48 trillion won in stocks, while domestic institutions and retail investors were net buyers, purchasing 567.4 billion won and 899.8 billion won, respectively.
Lee Kyung-min, an analyst at Daishin Securities, noted that while large-cap semiconductor stocks faced downward pressure due to reports of Apple potentially sourcing memory chips from China's CXMT, bargain hunters stepped in to support semiconductor equipment and materials companies. This sentiment was influenced by Friday's positive performance on Wall Street, where the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw gains following U.S. job reports that eased concerns about interest rate hikes.
In Seoul's market, major stocks showed mixed performance. Samsung Electronics, a semiconductor giant, fell 0.43 percent to 230,000 won, and its competitor SK hynix decreased by 0.14 percent to 1.42 million won, both having started the day in positive territory. Conversely, LG Energy Solution climbed 2.08 percent to 367,500 won, and leading automaker Hyundai Motor rose 3.16 percent to 408,000 won.
The South Korean won depreciated against the U.S. dollar, trading at 1,418.4 won per dollar at 3:30 p.m., a decrease of 2.3 won from the previous trading session.