Key facts
- Seoul shares expanded gains late Thursday morning on bargain hunting.
- The KOSPI traded 3.06 percent higher at 5,836.73 as of 11:20 a.m.
- Institutions and foreigners were net buyers of stocks.
- Samsung Electronics surged 5.5 percent, while SK hynix fell 1.28 percent.
Seoul shares expanded their gains late Thursday morning as investors engaged in bargain hunting, scooping up large-cap stocks following recent sharp declines. The benchmark Korea Composite Stock Price Index (KOSPI) traded 3.06 percent higher at 5,836.73 as of 11:20 a.m., recovering from a significant plunge of 5.98 percent on Wednesday and a 10.84 percent drop in the preceding session.
Despite the positive market movement, underlying concerns persist regarding artificial intelligence spending and uncertainty surrounding the U.S. Federal Reserve's future interest rate path. The Fed maintained its benchmark rate at 3.5-3.75 percent for the fifth consecutive meeting, offering minimal new guidance and increasing investor uncertainty.
Market activity saw institutions and foreigners making net purchases of 1.42 trillion won and 554 billion won, respectively, while individuals were net sellers of 1.97 trillion won. Among major stocks, market bellwether Samsung Electronics surged 5.5 percent, and top automaker Hyundai Motor climbed 1.27 percent. Defense sector companies also showed strength, with Hanwha Aerospace jumping 12.35 percent and LIG Defense & Aerospace advancing 7.42 percent. However, some large-cap stocks declined, including Samsung Electronics' rival SK hynix, which fell 1.28 percent, and leading home appliance maker LG Electronics, down 0.4 percent. Internet giant Naver retreated 0.89 percent, and budget carrier Air Busan dropped 1.15 percent.