Seoul: South Korean stocks surged sharply for the fourth consecutive session on Thursday, driven by significant purchasing activity in major chipmakers. The Korean won also appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 234.3 points, or 3.56 percent, to finish at 6,813.34. This follows gains of 0.65 percent, 0.73 percent, and 3.68 percent in the previous three sessions. The KOSPI initially rose by 2.96 percent and continued to gain as both foreign and institutional investors focused on acquiring key chip stocks.
The trading volume was moderate with 416 million shares worth 34.45 trillion won (approximately US$24.22 billion) changing hands. The market saw more decliners than advancers, with 532 stocks falling compared to 332 stocks rising. Foreign investors and institutions bought a net 2.09 trillion won and 679.8 billion won in stocks, respectively. Meanwhile, retail investors alone sold a net 2.71 trillion won in shares.
The positive sentiment was partly influenced by gains in U.S. stocks linked to the artificial intelligence (AI) technology sector overnight. The S and P 500 advanced by 0.26 percent, nearing a record high, while the Nasdaq composite rose by 0.54 percent. On the other hand, the Dow Jones Industrial Average saw a slight decline of 0.04 percent.
Kang Jin-hyeok, an analyst at Shinhan Securities Co., noted, "Foreign buying remained strong, helped by relief that the U.S. consumer price index for July came in line with expectations and a series of strong earnings reports from AI infrastructure companies."
In Seoul, prominent large-cap stocks saw significant gains. Semiconductor giant Samsung Electronics surged by 4.89 percent to 268,000 won per share, and its competitor SK hynix rose by 5.91 percent to 1.59 million won, both continuing their upward trend for three consecutive sessions.
Additionally, SK Square, the parent company of SK hynix, saw its stock rise by 9.08 percent to 1.12 million won. Samsung Electro-Mechanics, an affiliate of Samsung Electronics, skyrocketed by 12.58 percent to 1.5 million won. LG Energy Solution increased by 1.95 percent to 365,500 won, and leading automaker Hyundai Motor saw a 2.1 percent rise to 418,500 won.
The Korean won was quoted at 1,419.4 won against the U.S. dollar at 3:30 p.m., marking an increase of 3.7 won from the previous day's close.