On Thursday, the South Korean stock market achieved a remarkable milestone, closing at a 10 – month high. This surge was predominantly fueled by the rally in technology stocks, which came on the heels of the robust earnings report released by the US chip behemoth, Nvidia. Concurrently, the exchange rate of the South Korean won against the US dollar also witnessed an upward movement.
KOSPI’s Impressive Gain
The Korean Composite Stock Price Index (KOSPI) soared by 50.49 points, representing a significant 1.89% increase, and concluded the trading day at 2720.64 points. This marked the highest closing level since August 2nd last year, when the index closed at 2725.02 points.
The trading activity on that day was vigorous, with a stock trading volume reaching 444.45 million shares. The total transaction value amounted to 107.9 trillion Korean won, approximately equivalent to 7.8 billion US dollars. Of the listed stocks, 749 experienced price increases, while 151 saw declines.
Investor Activity Analysis
In terms of investor behavior, institutional investors and foreign investors were the major buyers. Institutional investors net purchased stocks worth 684.56 billion won, while foreign investors added 290.27 billion won worth of stocks to their portfolios. In contrast, retail investors were net sellers, offloading stocks valued at 996.99 billion won.
Shinhan Securities analyst Lee Jae – won pointed out that the invalidation of Trump’s proposed tariffs by the US International Trade Court also contributed to the market’s upward momentum. “With most of President Trump’s tariffs blocked by the US Trade Court, the purchases by institutional and foreign investors propelled the benchmark index higher,” he explained.
Sector – Specific Movements
In the Seoul stock market, technology and automotive stocks led the upward charge. Samsung Electronics, a tech giant, saw a 0.36% increase, closing at 56,100 Korean won. Semiconductor powerhouse SK Hynix rose by 1.92%, reaching a closing price of 212,000 Korean won.
Among automotive stocks, Hyundai Motor, South Korea’s largest carmaker, climbed 2.74% to 191,000 Korean won. Its subsidiary, Kia Motors, outperformed with a 4.72% increase, closing at 93,200 Korean won. Hyundai Heavy Industries, a leading shipbuilding enterprise, experienced an even more substantial gain of 11.26%, closing at 108,700 Korean won.
However, not all stocks participated in the rally. LG Energy Solution, a leading battery manufacturer, declined by 0.35% to 288,000 Korean won. Korea Electric Power Corporation also saw a 2.48% drop, closing at 29,550 Korean won.
Currency Movement
By the end of the afternoon trading session, the exchange rate of the South Korean won against the US dollar stood at 1 US dollar to 1,375.9 South Korean won. This was an increase of 0.6 South Korean won compared to the previous day’s closing rate.
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