Seoul: South Korean stocks experienced a significant rise on Monday, driven primarily by bargain hunting and substantial gains in the defense, energy, and IT sectors. The local currency appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 52.04 points, or 1.8 percent, closing at 2,946.66. Trade volume was considerable, with 718.1 million shares exchanged, valued at 14.3 trillion won (US$10.5 billion). The market saw 619 stocks advancing, compared to 278 declining. Retail investors and institutions were net buyers of local shares, purchasing 45.4 billion won and 252.9 billion won worth, respectively, while foreign investors sold off 322.4 billion won.
Lee Kyoung-min, an analyst at Daishin Securities, noted that the KOSPI's rebound followed a one-day decline, as retail investors sought to capitalize on lower share prices. He suggested that the ongoing tensions in the Middle East are unlikely to have a prolonged impact on the South Korean stock market.
The recent situation contrasts with major U.S. indexes, which fell on Friday due to Israel's airstrikes on Iranian military and nuclear sites, affecting investor sentiment. The Dow Jones Industrial Average decreased by 1.79 percent, the Nasdaq composite fell by 1.3 percent, and the S and P 500 dropped by 1.13 percent.
In the Seoul market, major chipmaker SK hynix saw a significant increase of 5.31 percent, reaching 248,000 won, whereas Samsung Electronics decreased by 1.89 percent to 57,200 won. Defense and energy stocks demonstrated robust performance, with Hanwha Aerospace rising 2.75 percent, Hyundai Rotem climbing 6.32 percent, and Hanwha Systems escalating by 18.01 percent.
Doosan Enerbility, a major nuclear power plant manufacturer, surged by 9.16 percent, while HD Hyundai Electric advanced by 6.16 percent. IT sector shares also performed well, with Naver gaining 4.49 percent and Kakao increasing by 3.3 percent.
Shipbuilders showed strength as well, with HD Hyundai Heavy advancing by 5.03 percent, and HD Korea Shipbuilding rising by 4.85 percent. The local currency was quoted at 1,363.8 won against the U.S. dollar at 3:30 p.m., marking an increase of 5.8 won from the previous session.