Seoul shares rise for 2nd day on blue-chip tech, steel gains

The Korea Times

The Korea Times

Finance

Sun, October 1, 2023 | 17:08

Economy

Seoul shares rise for 2nd day on blue-chip tech, steel gains

Posted : 2023-01-20 17:01

Updated : 2023-01-20 17:01

An electronic board set up in a dealing room of Hana Bank in Seoul shows the closing price of the benchmark KOSPI and the won-dollar exchange rate, Jan. 20. Yonhap

Korean stocks rose for a second straight day Friday, driven by bullish tech and steel sectors amid hope for demand recovery from China, analysts said. The local currency edged down against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 14.92 points, or 0.63 percent, to 2,395.26. Trading volume was light at 295.3 million shares worth 4.96 trillion won ($4.01 billion), with gainers outpacing decliners 568 to 254.

"Stocks have been strong in the sense that they have been relatively free from the recession concerns and the clout of the U.S. monetary policy. China's reopening, which came earlier than expected, is triggering more foreign inflows, especially in the blue-chip tech sectors," Kim Jee-hyun, an analyst at Kiwoom Securities Co., said.

The KOSPI opened higher, bucking a decline on Wall Street overnight, although it bobbed in and out of the positive terrain in choppy trading amid a lack of fresh momentum.

Foreigners extended its buying mode for the eighth consecutive session, scooping up a net 230.7 billion won worth of local stocks. Institutions lent support with a net 8.34 billion won net purchase, while individuals sold off a net 245.2 billion won.

Large-cap tech stocks drove up the main index, with Samsung Electronics rising 0.5 percent to 61,800 won and top battery maker LG Energy Solution jumping nearly 3 percent to 469,500 won. Chip giant SK hynix also finished up 2.5 percent to 87,600 won.

POSCO Holdings, the country's No. 1 steelmaker, hiked 2.7 percent to 308,500 won. Korea Zinc, a major non-ferrous metal smelter, rose 2 percent to 566,000 won.

Bio shares were among major decliners for the day. Vaccine maker SK Bioscience slumped 3.8 percent to 74,300 won on a grim growth outlook amid falling vaccine demand. Biopharmaceutical firm Celltrion also slid 0.9 percent to 162,500 won.

The local currency ended at 1,235.50 won against the U.S. dollar, down 3.4 won from Thursday's close.

Korean stock markets will close Monday and Tuesday for the Lunar New Year holiday.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 8.2 basis points to 3.330 percent, and the return on the benchmark five-year government bonds added 7.2 basis points to 3.295 percent. (Yonhap)

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