Seoul Stock Market Rallies on Strong Tech and Financial Sector Gains

Seoul: South Korean shares closed sharply higher Monday, bolstered by significant gains in technology and financial sectors, alongside substantial foreign buying. The benchmark Korea Composite Stock Price Index (KOSPI) escalated by 26.38 points, or 1.02 percent, finishing the day at 2,623.29. According to Yonhap News Agency, the trading volume was recorded at a moderate level with 391 million shares traded, totaling 8.3 trillion won (approximately US$6.12 billion). The market saw more gainers than losers, with 488 stocks advancing compared to 395 that declined. Foreign investors turned net buyers, purchasing 77.6 billion won worth of shares, while retail investors sold off approximately 440 billion won. Institutional investors were also active, acquiring a net of 325 billion won in shares. Despite recent trends of foreign investors being net sellers for two consecutive months, with significant sell-offs in August and September, there appears to be a shift in their market strategy. Kiwoom Securities analyst Han Ji-young highlighted the importance of foreign investment patterns, especially in semiconductor stocks, as a crucial determinant for this week's market dynamics. Han noted that foreign investors have net sold about 1 trillion won worth of shares this month alone. Among individual stocks, tech giant Samsung Electronics saw a substantial increase, rising 2.53 percent to close at 60,800 won. Similarly, SK hynix also witnessed gains, up 0.81 percent to 187,500 won. The financial sector also showed robust performance; KB Financial leaped by 6.46 percent to 97,200 won, Woori Financial climbed 3.96 percent to 16,540 won, and Shinhan Financial increased by 1.04 percent to 58,100 won. However, not all sectors fared well. LG Energy Solution dropped by 1.22 percent to 406,000 won, and Samsung SDI fell by 3.75 percent to 359,000 won. In the automotive sector, Hyundai Motor remained unchanged at 248,500 won, while Kia experienced a slight decline of 0.49 percent to 100,600 won. The Korean won weakened against the U .S. dollar, trading at 1,355.9 won by the close of the market, a decrease of 6.40 won from the previous session. In the bond market, prices rose, leading to a decline in yields; the yield on three-year Treasurys fell by 0.9 basis points to 2.938 percent, and the five-year government bond yield decreased by 0.1 basis point to 2.997 percent.