Seoul:<Text>
South Korean stocks closed higher for two consecutive days on Friday as investors took advantage of blue chip shares available at bargain rates amidst rising uncertainties ahead of crucial global events. The Korean won also saw an increase against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 26.99 points, or 0.86 percent, closing at 3,168.73. The trading volume was relatively slim, with 233.9 million shares exchanged, valued at 8.21 trillion won (US$5.89 billion). The number of winning shares slightly outpaced the losing ones, with 461 winners to 410 losers.
Institutional and foreign investors were active in purchasing local shares worth 159.1 billion won and 180.6 billion won, respectively, while retail investors offloaded a net 458.5 billion won. The KOSPI index opened significantly higher, rising over 1 percent due to strong institutional and foreign buying but lost some ear ly gains amid choppy trading throughout the session.
U.S. stocks had declined overnight as investors awaited remarks from U.S. Federal Reserve Chair Jerome Powell, which could offer insights into the possibility of a rate cut in September. Lee Kyung-min, an analyst at Daishin Securities, noted that the index is gaining momentum ahead of important global events, including Powell's upcoming speech at the Jackson Hole symposium.
Lee highlighted that optimism regarding the upcoming South Korea-U.S. summit is also supporting the KOSPI. He remarked that related sectors and companies are leading the recovery as bargain hunting intensifies. In Seoul, most large-cap shares traded higher, with the chip and defense sectors at the forefront of the gains.
Samsung Electronics, a major player in the chip sector, increased by 1.13 percent to 71,400 won, while SK hynix gained 2.45 percent to 251,000 won, breaking a five-day losing streak. However, leading battery maker LG Energy Solution saw a decline of 1.34 percent to 367,500 won.
Defense and shipbuilding shares performed well ahead of President Lee Jae Myung's visit to the United States next week. Hanwha Aerospace, a defense powerhouse, surged 6.83 percent to 891,000 won, continuing a two-day winning streak. Smaller player Hyundai Rotem rose 4.14 percent to 181,000 won, and leading shipbuilder HD Hyundai Heavy Industries gained 2.33 percent at 483,000 won. The local currency was quoted at 1,393.65 won against the greenback at 3:30 p.m., up 4.75 won from the previous session.