Seoul: South Korean stocks climbed over 1 percent on Tuesday, setting a new record high for the fifth consecutive session, propelled by a surge in chip shares and substantial foreign buying. The Korean won also saw a significant increase against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) gained 42.31 points, or 1.24 percent, closing at a fresh all-time high of 3,449.62. This marked the 11th straight session of increase for the KOSPI. The trading volume was robust, with 398.4 million shares worth 13.8 trillion won (US$10 billion) changing hands, though losers outnumbered winners 568 to 297.
Foreign investors continued to show strong interest, purchasing over 1.7 trillion won in local shares, marking their seventh consecutive session of net purchases. Meanwhile, institutions bought 78.8 billion won, while retail investors sold off 1.76 trillion won for profit-taking. “The KOSPI soared on the back of massive purchase by foreign investors and the strong performance of chip shares,” commented Lee Kyoung-min, an analyst at Daishin Securities.
Blue chip technology stocks gained momentum, driven by expectations of U.S. interest rate cuts and the South Korean government’s strategic plans to support advanced industries. Wall Street’s positive movement, with hopes of a U.S. Federal Reserve rate cut, also contributed to the optimism. The Dow Jones Industrial Average rose 0.11 percent, the Nasdaq composite increased 0.94 percent, and the S and P 500 added 0.47 percent. Notable gains included Tesla’s 3.56 percent jump and Alphabet’s 4.3 percent rise.
In Seoul, chip stocks continued their upward trajectory. Samsung Electronics soared 3.79 percent to a new yearly high of 79,400 won, and SK hynix rose 5.14 percent to reach a record high of 348,000 won. Defense stocks also performed well amid Middle Eastern tensions, with Hanwha Aerospace surging 5.58 percent to a record 1.04 million won, Hyundai Rotem climbing 3.72 percent to 223,000 won, and LIG Nex1 jumping 9.49 percent to 542,000 won.
Doosan Enerbility, a power plant manufacturer, saw a substantial increase of 7.65 percent to 63,300 won, while SK Square, an investment firm in the semiconductor and IT sectors, advanced 2.74 percent to 206,000 won. Shipbuilders also experienced gains, with HD Hyundai Heavy up 0.9 percent to 503,000 won, Hanwha Ocean rising 1.19 percent to 110,800 won, and HD Korea Shipbuilding gaining 1.09 percent to 416,000 won.
Conversely, leading battery maker LG Energy Solution declined 1.69 percent to 349,500 won, and Kakao, the country’s top mobile messenger operator, dipped 1.72 percent to 62,900 won.
The local currency traded at 1,378.9 won against the U.S. dollar at 3:30 p.m., up 10.1 won from the previous session. Bond prices, which move inversely to yields, closed higher, with the yield on three-year Treasurys down 2.6 basis points to 2.417 percent, and the yield on five-year government bonds decreasing 1.9 basis points to 2.565 percent.