Seoul Stock Market Rises for Third Day on Tech Strength and Foreign Investments

Seoul: South Korean shares finished higher for a third consecutive day, pushed by strong performances in the tech sector and continued foreign investment. The Korea Composite Stock Price Index (KOSPI) increased by 10.16 points, or 0.39 percent, ending the day at 2,633.45. Despite a slight depreciation in the local currency against the U.S. dollar, the market sentiment remained positive. According to Yonhap News Agency, the trading volume on Tuesday was recorded at 430 million shares, valued at approximately 9.72 trillion won (US$7.14 billion). The market dynamics were mixed, with 445 stocks declining and 418 advancing. The index was buoyed early in the session by a positive overflow from U.S. markets, where the Dow Jones Industrial Average rose 0.47 percent to surpass the 43,000 mark for the first time, closing at 43,065.22. Similarly, the S and P 500 set a new record, closing at 5,859.85. Foreign investors played a significant role, remaining net buyers for a second consecutive day, purchasing a net 280 bi llion won worth of shares. Conversely, retail investors sold off 346.7 billion won, while institutional buyers purchased 22.7 billion won in shares. Analyst Han Ji-young from Kiwoom Securities highlighted the pivotal role of foreign investors, who have recently reversed a two-month trend of net selling, which had reached 9.87 trillion won in the previous two months. In terms of individual stocks, major tech companies saw varied results. Samsung Electronics rose by 0.33 percent to 61,000 won, while SK hynix saw a significant increase of 2.88 percent, closing at 192,900 won. On the downside, LG Energy Solution fell by 0.62 percent to 403,500 won, and Samsung SDI dropped by 2.23 percent to 351,000 won. Financial stocks experienced declines following previous gains. KB Financial fell by 1.65 percent to 95,600 won, and Shinhan Financial decreased by 0.52 percent to 57,800 won. The automotive sector also saw mixed results; Hyundai Motor decreased by 1.01 percent to 246,000 won, and Kia dipped by 0.89 percent to 9 9,700 won, whereas Hyundai Mobis slightly increased by 0.22 percent to 224,000 won. The South Korean won closed weaker against the dollar, trading at 1,361.3 won. In the bond market, prices rose, leading to a decrease in yields; the three-year Treasury yield fell 3.2 basis points to 2.906 percent, and the five-year government bond yield decreased by 3.4 basis points to 2.963 percent.