Seoul shares rise almost 1.5% on chip, battery gains
South Korean stocks finished nearly 1.5 percent higher Wednesday, as investors scooped up semiconductor and battery shares despite overnight losses on Wall Street. The local currency rose sharply against the greenback.
The benchmark Korea Composite Stock Price Index gained 37.22 points, or 1.47 percent, to close at 2,574.82.
Trade volume was moderate at 396.7 million shares worth 12.23 trillion won ($8.44 billion), with winners outpacing losers 509 to 354.
Foreign and institutional investors together bought a net 411.6 billion won, while retail investors unloaded a net 503.6 billion won.
Overnight, US stock markets fell for the second straight session amid lingering uncertainties over tariff policies of US President Donald Trump.
The S&P 500 dipped 0.76 percent, and the Dow Jones Industrial Average declined 1.14 percent, while the tech-heavy Nasdaq fell 0.18 percent.
"Despite continued corrections in the US stock market, the Korean stock market has remained relatively stable. However, increased volatility linked to tariff concerns will be unavoidable," Kim Ji-won, an analyst at KB Securities, said.
Market heavyweight Samsung Electronics climbed 2.43 percent to 54,900 won, and chip rival SK hynix soared 5.91 percent to 198,900 won.
Battery manufacturers also reversed losses from the previous session. Industry leader LG Energy Solution jumped 2.2 percent to 348,500 won, and Samsung SDI rose 1.91 percent to 213,000 won.
Top automaker Hyundai Motor gained 1.33 percent to 198,200, while leading bio firm Samsung Biologics rose 1.03 percent to 1,079,000 won.
The local currency was trading at 1,451 won against the US dollar at 3:30 p.m., up 7.2 won from the previous session. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
12 hours ago
- Korea Herald
Lee, Fiala hail $18b nuclear power deal as 'touchstone' for broader economic exchange
President Lee Jae-myung and the Czech Republic's Prime Minister Petr Fiala in their first phone call on Wednesday acknowledged that the $18 billion nuclear exports deal with the European country could further stimulate bilateral economic exchanges. Referring to the deal signed between the two countries on June 4, Lee's spokesperson Kang Yu-jung told reporters that the deal to build two nuclear reactors in Dukovany, Czech Republic, would "serve as a touchstone for the broader bilateral economic exchanges." Kang added that the two countries may also cooperate comprehensively in cutting-edge technologies, infrastructure and energy. In July 2024, a South Korean consortium led by the state-run Korea Hydro and Nuclear Power was chosen to build two 1,000 megawatt nuclear power units in the Czech Republic. However, the final contract was not signed until this month after the local court lifted an injunction filed by France-based EDF, which was a competing bidder. During their 20-minute phone call, both leaders also called for a more active people-to-people cultural exchange and cooperation, as this year marks the 35th anniversary of forging diplomatic ties and the 10th anniversary of the strategic partnership between the two nations. Lee also expressed his anticipation for Fiala's visit to South Korea at his convenience during their call, Kang added. Lee's phone call with Fiala followed those of US President Donald Trump, Japanese Prime Minister Shigeru Ishiba and Chinese President Xi Jinping.
Korea Herald
14 hours ago
- Korea Herald
Kospi soars to over 3-yr high on foreign buying spree, eased tariff uncertainties
South Korea's stock market surpassed the 2,900-point mark for the first time in over three years Wednesday, extending its winning streak to a sixth day, thanks to continued foreign inflow and progress in trade talks between the world's two biggest economies. The benchmark Korea Composite Stock Price Index added 35.19 points, or 1.23 percent, to close at 2,907.04, marking the highest level since January 14, 2022, when the index closed at 2,921.92. Trade volume was heavy at 383.5 million shares worth 12.3 trillion won ($9 billion), with winners outnumbering losers 600 to 281. Foreign investors continued their purchases of local shares for a sixth consecutive session. "The Kospi breached the 2,900-point mark on upbeat momentum created by favorable US-China trade negotiations and foreign investors' continued purchase of big-cap shares," Lee Jae-won, an analyst at Shinhan Securities, said. High-level officials from Washington and Beijing held trade talks in London for two days through Tuesday, where they agreed on a framework to carry out measures to resolve their trade disputes on rare earths and technology. Kim Jae-seung, an analyst at Hyundai Motor Securities, said expectations on the Lee Jae-myung government's policy to boost the local stock market also improved market sentiment. Lee, who took office last week, has pledged to usher in the 5,000-point era and get rid of the so-called Korea discount, which refers to investors' tendency undervalue South Korean assets due to geopolitical risks or other issues. Overnight, Wall Street also closed higher, with the Dow Jones Industrial Average rising 0.25 percent, the S&P 500 adding 0.55 percent, and the tech-heavy Nasdaq composite gaining 0.63 percent. In Seoul, tech behemoth Samsung Electronics increased 1.18 percent to 59,900 won, and its chipmaking rival SK hynix jumped 4.12 percent to 240,000 won. Top automaker Hyundai Motor climbed 2.03 percent to 201,000 won, while its sister Kia advanced 2.54 percent to 96,900 won. Hyundai Motor's auto-parts making affiliate, Hyundai Mobis, soared 4.91 percent to 288,500 won. Major nuclear power plant manufacturer Doosan Enerbility also surged 6.46 percent to 51,100 won, and Kakao, the operator of the country's dominant mobile messenger, went up 2.8 percent to 51,400 won. On the other hand, some of the big-cap defense and shipbuilding shares lost ground as investors sought to gain profit following their rally the previous day. Defense giant Hanwha Aerospace lost 3.31 percent to 905,000 won, and leading shipbuilder HD Hyundai Heavy dropped 2.11 percent to 418,000 won. Major financial firms also went down, with KB Financial dipping 3.34 percent to 107,200 won and Shinhan Financial losing 1.81 percent to 59,800 won. The local currency was trading at 1,375.0 won against the greenback at 3:30 p.m., down 10.7 won from the previous session. (Yonhap)
Korea Herald
15 hours ago
- Korea Herald
Lee Jae-myung vows dividend boost, transparency in capital market
President calls for measures to seize profits from unfair stock transactions President Lee Jae-myung on Wednesday pledged to map out various incentives for listed companies on South Korean stock markets to pay out more dividends, saying the stock market could play a key role in boosting the national economy. "In other countries, people buy blue-chip stocks and use the dividends paid from them to supplement their living expenses, which boosts domestic consumption and contributes to a virtuous cycle in the economy, but (companies in) our country are not willing to pay dividends," said Lee during a meeting with representatives of the Korea Exchange, South Korea's main stock market operator, which is also tasked with market oversight. President Lee also said South Korean stocks tend to lag behind in dividend payments compared to other countries such as China. "There must be various reasons for that. So we are preparing for tax code reforms and policy improvements to boost dividends," Lee said. "If equities become an alternative destination that people find as attractive as real estate, then by allowing people to get more dividends and make money to cover living costs, companies will find it easier to attract capital, and a virtuous cycle will be created," he also said. The remarks came as South Korea's stock market hit a three-year high, extending a winning streak that started with his inauguration the previous week. Lee, who took office on June 4, also said restoring transparency in South Korea's capital market was his priority. Meeting the KRX representatives, including 55 rank-and-file employees of the bourse operator, Lee stressed the need for stronger market monitoring to tackle unfair trading practices -- namely, insider trading, market manipulation and market disruption. "At the core of a capitalist economy lies the stock market," Lee said. "The most important task is to resolve, or at least alleviate, the unfairness and opacity of the stock market." Later in the afternoon, Lee's spokesperson elaborated on the president's remarks that the government would respond firmly to unfair trading by implementing a "one strike, you're out" policy for acts such as stock manipulation. The government would seek measures to recover illicit gains through fines equal to the profits obtained,' his spokesperson Kang Yu-jung told reporters. During his presidential election campaign, Lee pledged to improve market liquidity for stock investors and come up with measures to better distribute profits to shareholders. Lee, the former leader of what was then the main opposition party, has also called for a legal revision to require boardrooms at South Korean companies to fulfill their fiduciary duty not only to their companies but also to their shareholders. The Kospi -- South Korea's benchmark stock index -- hit its highest point in about three years and five months, continuing its winning streak for a fifth consecutive trading day since Lee's inauguration on June 4. The market did not operate on Friday due to the observance of National Memorial Day. At 3 p.m. Wednesday, the Kospi stood at 2,903.10 points, up more than 1 percent from the previous day's close. Over the first week of Lee's presidency, the index had risen nearly 8 percent. Foreign investor net inflows also continued for the past five trading days, including net purchases of 93.2 billion won ($68 million) on Wednesday as of around 3 p.m.
