Seoul shares end higher on bargain hunting, US rate cut hopes; won sharply up

Korea Herald

a day ago

South Korean stocks closed higher Monday as investors purchased blue chip shares at bargain rates after a steep fall last week and on heightened expectations for the US Federal Reserve's pivot to monetary easing. The Korean won rose sharply against the US dollar.
The benchmark Korea Composite Stock Price Index climbed 28.34 points, or 0.91 percent, to close at 3,147.75.
Trade volume was a little slim at 291 million shares worth 9.66 trillion won ($6.98 billion), with winners outnumbering losers 677 to 209.
Monday's gain came after the Kospi fell at the steepest pace in nearly four months on Friday amid investor sentiment dampened by the government's proposal for a tax revision aimed at raising taxes on corporations and stock investors.
Institutions and foreigners bought local shares worth 131.8 billion won and 83.3 billion won, respectively, while retail investors sold a net 300 billion won.
"The Kospi rebounded after a 3.9 percent drop last Friday on bargain hunting," Lee Kyoung-min, an analyst at Daishin Securities, said.
News reports on the ruling party's possible reconsideration of the tax revision proposal also boosted investors' risk appetite, he added.
Lee noted weaker-than-expected US jobs data earlier spread woes over a possible economic recession in the world's biggest economy but also fueled hopes the Fed may go for multiple rate cuts later this year.
On Friday, Wall Street lost ground following the release of the US jobs report for July, which indicated the Donald Trump administration's tariff policies were weighing on employment in America. The Dow Jones Industrial Average closed 1.23 percent lower Friday, with the tech-heavy Nasdaq composite sliding 2.24 percent. The S&P 500 index fell 1.6 percent.
In Seoul, market top-cap Samsung Electronics rose 1.16 percent to close at 69,700 won, while chip giant SK hynix remained unchanged at 258,000 won.
Top internet portal operator Naver jumped 3.11 percent to 232,500 won amid expectations for the country's push to foster the artificial intelligence industry, and leading nuclear power plant builder Doosan Enerbility soared 4.72 percent to 64,300 won.
The state-run Korea Electric Power Corp. climbed 2.9 percent to 37,200 won, and major defense firm Hyundai Rotem escalated 3.09 percent to 200,000 won.
Bio and auto shares also gained ground.
Samsung Biologics climbed 1.35 percent to 1.05 million won, and Celltrion advanced 1.52 percent to 173,900 won.
Top automaker Hyundai Motor added 0.48 percent to 211,000 won, and its sister Kia increased 1.98 percent to 102,800 won.
In contrast, shipbuilders fell sharply after last week's rally. Shipbuilders had soared on the back of South Korea's pledge to invest $150 billion in the US shipbuilding industry as part of a tariff deal with the Trump administration.
HD Hyundai Heavy lost 2.73 percent to 463,500 won, Hanwha Ocean tumbled 2.64 percent to 114,300 won, and HD Korea Shipbuilding dropped 1.6 percent to 337,500 won.
The local currency was quoted at 1,385.2 won against the greenback at 3:30 p.m., sharply up 16.2 won from the previous session. (Yonhap)