Key facts
- Seoul stocks closed higher for a second consecutive session on Wednesday.
- The gains were driven by an extended chip rally.
- Investors are awaiting earnings releases from U.S. big tech companies.
- The KOSPI index closed up 0.74% to 6,797.7.
- The index had previously reached a high of 7,166.00.
- Retail and institutional investors sold off tech heavyweights to lock in profits, causing the index to shed early gains.
Seoul stocks concluded Wednesday trading higher for the second consecutive session, buoyed by sustained strength in the semiconductor sector ahead of key earnings reports from major U.S. technology firms. The benchmark Korea Composite Stock Price Index (KOSPI) finished up 49.75 points, or 0.74 percent, at 6,797.7, after reaching an intraday peak of 7,166.00.
The market opened with significant gains, with the KOSPI initially rising 5.01 percent as investors anticipated big tech earnings and AI investment plans. Foreign investors were actively purchasing semiconductor stocks, contributing to the upward momentum.
However, the index pared back some of its earlier advances as the session progressed. Retail and institutional investors engaged in profit-taking, selling off tech heavyweights. This cautious sentiment was also influenced by rising global oil prices and anticipation of Alphabet's second-quarter earnings report, according to Lee Kyoung-min, an analyst at Daishin Securities.