SEOUL — South Korean stocks ended the trading day slightly up on Monday as investors looked for bargains ahead of the U.S. Federal Reserve’s policy meeting scheduled for this week. The local currency also strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) increased by 7.74 points, or 0.34 percent, to close at 2,310.55.
According to Yonhap News Agency, the trading volume was moderate, with 437 million shares changing hands worth 6.82 trillion won (US$5 billion). Gainers outnumbered losers 593 to 281. The market opened lower but rebounded later in the session, as investors took advantage of lower prices following significant drops the previous week.
However, the rebound was limited. Investors are also waiting for cues from Federal Reserve Chairman Jerome Powell concerning future monetary policy. "Investors sat on the sidelines as they awaited the Fed meeting and South Korea's export data, along with the U.S. manufacturers' index," stated Kim Seok-hwan, an analyst at Mirae Asset Securities Co. Kim further noted that geopolitical issues in the Middle East also encouraged a wait-and-see approach among investors.
Foreigners and retail investors sold a net 63.3 billion won and 26.1 billion won worth of local shares, respectively, while institutions bought a net 43.3 billion won. Tech giants Samsung Electronics and SK hynix closed unchanged at 67,300 won and 119,100 won, respectively.
Among the sectors that gained were battery manufacturers, with LG Energy Solution rising 1.25 percent to close at 405,000 won. Top steelmaker POSCO Holdings advanced 2.36 percent to 433,000 won, and Korea Zinc gained 5.15 percent to 490,000 won.
Conversely, the automotive sector struggled. Hyundai Motor fell 1.77 percent to 172,500 won, while Kia decreased by 2.01 percent to 78,100 won. Auto parts maker Hyundai Mobis declined by 3.86 percent to 211,500 won. Financial shares also experienced losses amid speculation that South Korea may implement a windfall tax on the banking sector. KB Financial dropped 2.67 percent to 51,100 won, and Shinhan Financial slipped 2.57 percent to 34,100 won.
The local currency ended the day at 1,350.90 won against the U.S. dollar, an increase of 5 won from the previous close. Bond prices fell, with the yield on three-year Treasurys increasing by 1.6 basis points to 4.089 percent, and the yield on five-year government bonds rising by 3.1 basis points to 4.201 percent.