SEOUL — Shares in Seoul advanced for a second consecutive day on Monday, fueled by optimism over potential U.S. interest rate cuts after recent inflation data met market forecasts. The anticipation for rate reductions by the Federal Reserve as soon as June contributed to the positive sentiment among investors.
According to Yonhap News Agency, the U.S. personal consumption expenditures index for February, unveiled last Friday, aligned with investor expectations, reinforcing the belief that the Fed might initiate this year's first rate cut in the upcoming months. This development sparked a rally in Seoul's stock market, with the benchmark Korea Composite Stock Price Index (KOSPI) increasing by 1.23 points, or 0.04 percent, to close at 2,747.86.
Trading volume was noted to be low, with 391.77 million shares exchanged, amounting to a total value of 9.9 trillion won (approximately US$7.3 billion). The day ended with more stocks advancing than declining, 573 to 295, respectively. Institutional investors and foreigners were net buyers, purchasing a combined 294 billion won worth of stocks, which helped offset the selling by individual investors that totaled 317.11 billion won.
In the stock market, sectors such as airlines and domestic-focused companies saw significant gains. Notable performers included Hanjin KAL Corp., the parent company of Korean Air Co., which surged 3.4 percent to 61,500 won. Korean Air itself rose 1.6 percent to 22,050 won, while leading budget airline Jeju Air Co. saw a 4.7 percent increase to 2,870 won. Additionally, cosmetics giant Amorepacific Corp. and Korea Electric Power Corp. experienced gains of 6.3 percent and 0.5 percent, respectively.
However, not all was positive in the market, as some key players faced declines. Samsung Electronics Co. dropped by 0.5 percent, Hyundai Motor Co. saw a 2.4 percent reduction, POSCO Holdings decreased by 1 percent, and shipbuilding conglomerate HD Hyundai fell by 1 percent.
The Korean won experienced a decline against the U.S. dollar, closing at 1,349.40 won, a drop of 2.2 won from the previous session. Meanwhile, bond prices saw an uptick, inversely related to yields, with the yield on three-year Treasurys falling 3.1 basis points to 3.291 percent, and the yield on five-year government bonds decreasing by 2.8 basis points to 3.326 percent.