Seoul: Seoul shares closed slightly higher Friday, extending their winning streak to a third day, as investors kept a close eye on the ongoing tariff negotiations between South Korea and the United States, which is expected to have a significant impact on the economy. The Korean won lost ground against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 5.6 points, or 0.18 percent, to close at 3,196.05. Trade volume was moderate at 385.7 million shares worth 9.8 trillion won (US$7.1 billion), with losers outnumbering winners 504 to 370. Foreigners and institutions bought shares worth 268.9 billion won and 110.4 billion won, respectively, while retail investors unloaded 461.3 billion won.
Overnight, Wall Street closed mixed, with the tech-heavy Nasdaq composite and the S and P 500 up 0.18 percent and 0.07 percent, respectively, while the Dow Jones Industrial Average shed 0.7 percent. Investors were closely monitoring whether Seoul will also strike a trade deal with Washington following Japan, as Korea's top trade officials met with U.S. Commerce Secretary Howard Lutnick in the U.S. capital on Thursday.
In the meeting, the two sides reaffirmed their commitment to striking a trade deal before the August 1 deadline and agreed to soon hold an additional round of negotiations, as reported by the Seoul government. "The market appears to have been relieved on news that Korea's industry minister and trade minister met with Lutnick, but the KOSPI showed limited growth due to persisting uncertainties ahead of the looming negotiation deadline," Lee Kyoung-min, an analyst at Daishin Securities, said.
In Seoul, tech giant Samsung Electronics edged down 0.15 percent to 65,900 won, while its chipmaking rival SK hynix lost 1.3 percent to 266,000 won. Leading battery maker LG Energy Solution shed 1.22 percent, reflecting Tesla's 8.2 percent slide overnight. Bio shares also lost ground, with Samsung Biologics falling more than 2 percent to 1.06 million won and Celltrion down 1.33 percent to 178,000 won.
Top automaker Hyundai Motor went down 0.46 percent to 216,500 won, and its sister Kia retreated 0.86 percent to 104,100 won as they both posted a decrease in operating profits in the second quarter mainly due to the effects of 25 percent tariffs on all imported cars imposed by the Donald Trump administration.
On the other hand, financial and shipbuilding shares delivered strong performances. KB Financial climbed 1.37 percent to 118,800 won and Shinhan Financial advanced 2.74 percent to 71,200 won. Major shipbuilder HD Hyundai Heavy soared 5.83 percent to 444,500 won, and its rival Hanwha Ocean gained 1.35 percent to 90,000 won on expectations for cooperation in the sector with the U.S.
Internet portal operator Naver also jumped 3.3 percent to 234,500 won, while Kakao Pay, the fintech arm of Kakao, shot up 10.71 percent on massive purchases by global investment bank Goldman Sachs. The local currency was quoted at 1,377.9 won against the U.S. dollar at 3:30 p.m., down 10.7 won from the previous session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.8 basis points to 2.485 percent and the return on the benchmark five-year government bonds increased 1.1 basis points to 2.637 percent.