Seoul Shares See Minor Gains as Korean Won Hits Four-Month Low

SEOUL: Seoul shares closed marginally higher on Friday, bolstered by retail buying amidst diminishing expectations for Federal Reserve rate cuts. Meanwhile, the Korean won fell to its lowest level in nearly four months against the U.S. dollar. According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) experienced a modest rise of 2.24 points, or 0.09 percent, settling at 2,583.27. Despite the slight uptick, the main index recorded a weekly decline of 0.4 percent. Trading activity was moderate, with 454.58 million shares exchanged, valued at 10.14 trillion won (approximately US$7.3 billion). The market saw more decliners than advancers, with 617 stocks falling and 258 rising. Institutional and individual investors collectively purchased 375 billion won worth of stocks, which helped counterbalance foreign selling, which stood at 388 billion won. Large-cap stocks displayed mixed performances. SK hynix Inc., the second-largest chipmaker, saw its shares increase by 1.4 percent, while KT and G Corp., a leading tobacco company, rose by 2 percent. Hyundai Mobis Co., an auto parts manufacturer, gained 2.6 percent, and Korea Gas Corp., a state-run entity, edged up 0.3 percent. Korea Zinc's shares surged by 10 percent as investors awaited the outcome of its share buyback, which concluded on Wednesday amid a control dispute over the world's largest zinc smelter. The elevated share price suggests some investors anticipate a higher offer price in the ongoing battle for control. The company has been engaged in a takeover contest against private equity firm MBK Partners and Young Poong Corp., the largest shareholder of the smelter. In a recent tender offer, Young Poong and MBK acquired a 5.34 percent stake in Korea Zinc, raising their total stake to over 38 percent. Korea Zinc is expected to announce the buyback results on Monday. Conversely, some major stocks saw declines. Samsung Electronics Co., a market leader, fell by 1.2 percent, Hyundai Motor Co. decreased by 1.3 percent, Korea Electric Power Corp. dropped by 1 percent, and Amorepacific Corp., a leading cosmetics firm, declined by 5.3 percent. The Korean won was trading at 1,388.70 won to the U.S. dollar at 3:30 p.m., marking its lowest value since July 3, and down 8.5 won from the previous trading session.