Key facts
- Seoul stocks ended a four-day losing streak on Thursday.
- Bargain hunting focused on major tech and semiconductor shares.
- The KOSPI closed up 1.37% at 6,717.97.
- Institutional investors were net buyers of 1.21 trillion won.
- Samsung Electronics and SK hynix shares rose.
- The Korean won fell against the U.S. dollar.
Seoul stocks closed sharply higher on Thursday, ending a four-day losing streak as investors engaged in bargain hunting for major technology and semiconductor shares. The benchmark Korea Composite Stock Price Index (KOSPI) gained 90.71 points, or 1.37 percent, to finish at 6,717.97. Trade volume was relatively light, with 197.7 million shares changing hands for a total value of 15.9 trillion won (US$11.6 billion). The number of declining stocks (576) outnumbered advancing stocks (303).
Institutional investors were the primary drivers of the market's rise, acting as net buyers with purchases totaling 1.21 trillion won. Conversely, retail and foreign investors were net sellers, offloading a combined 2.87 trillion won in shares.
Lee Kyoung-min, an analyst at Daishin Securities, noted that investors likely perceived the recent decline in the KOSPI as excessive, leading to bargain hunting, particularly in the two major semiconductor companies, as the positive outlook for the memory chip market remains intact. Investors are also awaiting the U.S. Federal Reserve's policy meeting, where a rate hike is anticipated.
Among market heavyweights, semiconductor stocks saw gains, with Samsung Electronics rising 2.01 percent to 253,500 won and SK hynix jumping 4.08 percent to 1,759,000 won. However, other key sectors experienced declines. Hyundai Motor shed 1.36 percent to 362,000 won, Hanwha Aerospace edged down 0.75 percent to 1,055,000 won, and bio firm Celltrion slid 0.17 percent to 177,200 won. The Korean won weakened against the U.S. dollar, trading at 1,368.6 won as of 3:30 p.m., a decrease of 9.2 won from the previous session's close.