Seoul: South Korean stocks closed higher Monday, rebounding from a steep decline the previous session, as investors scooped up major chipmakers, including market heavyweight Samsung Electronics. The local currency gained ground against the greenback.
According to Yonhap News Agency, after a choppy trading session, the benchmark Korea Composite Stock Price Index (KOSPI) gained 22.86 points, or 0.31 percent, to close at 7516.04. Trade volume was moderate at 561.4 million shares worth 43.4 trillion won (US$28.9 billion), with losers outnumbering winners 685 to 203. The index initially opened lower as investors tracked declines on Wall Street last week amid rising global bond yields and inflation concerns.
The KOSPI further extended its losses in early trading, falling as low as 7,142.71, down about 5 percent at one point, prompting the bourse operator to activate a sell-side sidecar program for five minutes. However, the index later turned higher, supported by gains in large-cap chip stocks after a district court partially accepted Samsung Electronics' request for an injunction to block a planned strike on Thursday. The management and its largest labor union also resumed government-led wage mediation talks.
"The index reversed course and moved higher on the rebound in Samsung Electronics shares," said Lee Kyung-min, an analyst at Daeshin Securities, noting that bargain hunting drove the KOSPI's rebound. Foreign investors sold a net 3.65 trillion won worth of local shares, extending their selling streak to an eighth consecutive session. Institutions and retail investors purchased a net 1.39 trillion won and 2.21 trillion won, respectively.
Most large-cap stocks ended mixed, with technology shares leading the gains. Samsung Electronics jumped 3.88 percent to close at 281,000 won after opening sharply lower, while SK hynix gained 1.15 percent at 1,840,000 won. In contrast, AI investment firm SK Square went down 0.46 percent to 1.09 million won, and leading battery maker LG Energy Solution slipped 2.16 percent to 408,000 won.
Auto shares were also among the losers, with giant Hyundai Motor losing 5.29 percent to 663,000 won and its auto parts-making affiliate Hyundai Mobis decreasing 9.22 percent to 571,000 won. The Korean won was quoted at 1,500.3 won against the U.S. dollar at 3:30 p.m., up 0.5 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 0.9 basis point to 3.757 percent, while the return on the benchmark five-year government bonds went down 2.6 basis points to 3.990 percent.