Seoul – In a positive trend, Seoul shares closed higher for the fourth day in a row, driven by foreign buying and despite ongoing concerns about the Federal Reserve's future policy direction.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 3.26 points, or 0.13 percent, to close at 2,514.96. However, trade volume was moderate at 353.45 million shares, worth approximately 6.43 trillion won (US$5 billion), with more decliners than gainers.
Foreign investors were net buyers of stocks, purchasing 119 billion won worth, which helped offset the selling by institutions and individuals valued at 137 billion won. This buying trend coincided with gains in major US stock indices, including the Dow Jones Industrial Average and the NASDAQ. Speculation about the nearing end of the Federal Reserve's rate-hike cycle, countered by recent Fed minutes suggesting continued tight monetary policy, influenced market sentiment.
Analysts noted the lack of major upside momentum, but foreign purchases provided enough support for a positive close. Large-cap stocks saw mixed results, with notable gains in key sectors like automotive, aviation, energy, and utilities. The Korean won also strengthened against the U.S. dollar, and bond prices rose, indicating declining yields.