Samsung Electronics Fuels Over 1% Rise in Seoul Shares

Seoul: South Korean stocks advanced over 1 percent on Monday, reaching a two-week high, driven by a significant rebound in shares of Samsung Electronics. The Korean won also showed gains against the U.S. dollar. According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) increased by 29.16 points, or 1.13 percent, to close at 2,612.43, marking the highest finish since October 15 when it ended at 2,633.45. The trading volume was relatively light, with 327.6 million shares valued at 9 trillion won (approximately US$6.5 billion) changing hands, as advancing stocks outpaced decliners 615 to 271. Institutional investors purchased a net 426.4 billion won in stocks, while foreign investors and individuals sold a net 130.8 billion won and 331 billion won, respectively. Samsung Electronics, the largest stock by market capitalization on the KOSPI, surged 3.94 percent to 58,100 won. The company, the world's leading memory chipmaker, had faced a downturn due to foreign selling amid disappointing earn ings. In contrast, SK hynix, a competitor in the chipmaking sector, saw its shares drop 2.49 percent to 196,000 won, and Hanmi Semiconductor, a chip equipment firm, declined 2.35 percent to 95,500 won. Meanwhile, electric vehicle battery manufacturers benefited from Tesla's strong sales report last week, with LG Energy Solution rising 2.33 percent to 416,500 won and POSCO Future M jumping 7.05 percent to 243,000 won. Korea Zinc's shares climbed 3.83 percent to 1.3 million won following the company's announcement of securing an 11.26 percent stake through a buyback offer aimed at maintaining management control against Young Poong Corp. and MBK Partners. Flagship carrier Korean Air rose 1.72 percent to 23,700 won, and leading online portal operator Naver increased 1.55 percent to 170,400 won. Conversely, bank shares ended the day lower, with KB Financial Group falling 4.75 percent to 96,200 won and Woori Financial Group dropping 5.97 percent to 16,060 won. The Korean won was trading at 1,385 won against the U.S. dollar at 3:30 p.m., up 3.7 won from the previous session, recovering from a near four-month low on Friday. Bond prices, which typically move inversely to yields, closed significantly lower, with the yield on three-year Treasurys rising 5.0 basis points to 2.932 percent, and the yield on five-year government bonds increasing 6.7 basis points to 3.008 percent.