Seoul: South Korean stocks closed higher for a third consecutive session Thursday, driven by hopes for a potential rate cut in the United States. The local currency remained almost unchanged against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) increased by 26.04 points, or 0.66 percent, to close at 3,986.91.
According to Yonhap News Agency, trade volume was moderate at 251.6 million shares, valued at 12.85 trillion won (US$8.77 billion). The number of advancing stocks surpassed declining ones, with 482 gainers compared to 389 losers. Foreign investors and institutions purchased a net 149.6 billion won and 431.9 billion won worth of local shares, respectively, while individual investors sold off a net 609.3 billion won.
The KOSPI had opened significantly higher, rising more than 1 percent, following overnight gains on Wall Street. On Wednesday (local time), U.S. stocks closed broadly higher, extending their winning streak to a fourth day as investors anticipated a possible easing by the U.S. Federal Reserve. The S and P 500 rose 0.7 percent, the Dow Jones Industrial Average gained 0.7 percent, and the tech-heavy Nasdaq composite climbed 0.8 percent.
However, the Seoul market later reduced its earlier gains as the central bank kept its benchmark interest rate unchanged amid what analysts interpreted as a more hawkish tone from policymakers. The Bank of Korea (BOK) maintained the key rate at 2.5 percent and raised the economic growth forecast for the country to 1 percent for 2025.
“The BOK’s rate freeze and expectations of a U.S. rate cut in December helped attract foreign funds into both the spot and futures markets, supporting a rebound in the index,” said Lee Jae-won, an analyst at Shinhan Securities.
Most large-cap shares traded mixed. Market bellwether Samsung Electronics added 0.68 percent to 103,500 won, and its chipmaking rival SK hynix jumped 3.82 percent to 544,000 won on eased artificial intelligence (AI) concerns. No. 1 internet company Naver dropped 4.55 percent to 251,500 won after Dunamu Inc., the operator of South Korea’s largest cryptocurrency exchange, Upbit, announced that it had suffered a significant hacking attack. Naver had announced the acquisition of Dunamu the previous day.
Leading biotech firm Samsung Biologics fell 0.3 percent to 1.65 million won, and major banking group KB Financial Group declined 0.8 percent to 123,700 won. The local currency was quoted at 1,464.75 won against the greenback at 3:30 p.m., rising 0.8 won from the previous session.