Seoul: South Korean stocks closed higher on Thursday, extending their winning streak to a seventh session, driven by gains in the defense and energy sectors. The local currency also traded higher against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 12.99 points, or 0.45 percent, to end at 2,920.03.
According to Yonhap News Agency, foreign investors briefly turned net sellers in the middle of the day to lock in profits but ultimately purchased a net 405.7 billion won (US$299 million) worth of local shares. Meanwhile, retail investors and institutions offloaded 175.1 billion won and 239.7 billion won, respectively. Trade volume was significant, with 695.5 million shares worth 17 trillion won changing hands, and winners outnumbering losers 518 to 374.
Lee Kyoung-min, an analyst at Daishin Securities, noted that the KOSPI maintained its upward momentum thanks to gains in the defense and nuclear power sectors, despite global market uncertainties. Fresh geopolitical tensions were cited as a factor boosting the defense and shipbuilding sectors, while expectations for more export deals benefited nuclear power plant shares.
Wall Street, however, closed lower overnight amid increased security concerns in the Middle East, evidenced by the United States’ plan to partially evacuate its embassy in Iraq.
In Seoul, defense giant Hanwha Aerospace saw a 5.3 percent rise to 953,000 won, and Hyundai Rotem climbed 5.15 percent to 179,700 won. Hanwha’s shipbuilding affiliate, Hanwha Ocean, also rose 5.79 percent to 84,000 won. In the nuclear sector, Doosan Enerbility increased 6.85 percent to 54,600 won, while KEPCO Engineering and KEPCO Plant Service, subsidiaries of South Korea’s state-run Korea Electric Power, surged 25.63 percent and 13.93 percent, respectively.
Meanwhile, leading battery maker LG Energy Solution climbed 3.93 percent to 304,000 won, and major shipping firm HMM increased 2.22 percent to 23,000 won. Conversely, tech giant Samsung Electronics declined 0.67 percent to 59,500 won, and chipmaker SK hynix fell 1.88 percent to 235,500 won.
The local currency was quoted at 1,358.7 won against the greenback at 3:30 p.m., showing a significant increase of 16.3 won from the previous session. Bond prices closed mixed, with the yield on three-year Treasurys gaining 1.0 basis point to 2.429 percent, while the return on the benchmark five-year government bonds remained unchanged at 2.581 percent.