SEOUL — The stock market in Seoul ended higher for the second consecutive day on Monday, buoyed by expectations that the U.S. Federal Reserve might commence interest rate cuts as early as June, following the release of U.S. inflation data that matched market forecasts. Concurrently, the Korean won depreciated against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) experienced a marginal increase of 1.23 points, or 0.04 percent, concluding the trading session at 2,747.86. Trading activity was relatively subdued, with 391.77 million shares traded, amounting to a total of 9.9 trillion won (about US$7.3 billion). The market saw a positive breadth with 573 stocks advancing against 295 declines.
Institutional and foreign investors were net buyers on the day, purchasing 294 billion won worth of shares. This buying activity helped mitigate the impact of the 317.11 billion won worth of stocks sold by individual investors. The anticipation of a rate reduction by the U.S. central bank has been fueled by the U.S. personal consumption expenditures index for February, which was unveiled last Friday and met market predictions.
Among the sectors leading the gains in the Seoul stock market were airlines and domestically focused stocks. Notable performers included Hanjin KAL Corp., the holding company of Korean Air Co., which saw its shares rise by 3.4 percent to 61,500 won. Korean Air itself enjoyed a 1.6 percent increase to 22,050 won, while budget airline Jeju Air Co. advanced by 4.7 percent to 2,870 won. In the cosmetics sector, Amorepacific Corp. shares jumped by 6.3 percent to 129,100 won, and Korea Electric Power Corp., a state utility firm, edged up by 0.5 percent to 22,100 won.
However, the market also witnessed some declines, with Samsung Electronics Co. dropping by 0.5 percent to 82,000 won. Hyundai Motor Co., a leading carmaker, saw its shares fall by 2.4 percent to 227,500 won. In the steel sector, POSCO Holdings decreased by 1 percent to 418,000 won, and in shipbuilding, HD Hyundai's shares were down by 1 percent to 70,500 won.
The trading day concluded with the Korean won losing value against the dollar, closing at 1,349.40 won, a decrease of 2.2 won from the previous session's close.