Seoul: Seoul stocks closed slightly higher Monday despite renewed tensions between the United States and Iran, with investors turning their attention to the upcoming earnings season. The local currency also gained against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 27.17 points, or 0.44 percent, to close at 6,219.09, after reaching an intraday high of 6,278.36. Trade volume was moderate at 683.8 million shares worth 22.3 trillion won (approximately US$15.1 billion). Market breadth was negative, with losers outnumbering winners 533 to 320.
Institutional investors were net buyers, acquiring 181.7 billion won, while foreigners and retail investors sold off a combined net 437.4 billion won. The index maintained its upward trajectory despite uncertainties over U.S.-Iran peace talks, exacerbated by the U.S. Navy's seizure of an Iranian-flagged cargo ship in the Gulf of Oman.
"The market is becoming less sensitive to risks stemming from the conflict in the Middle East, as similar noises are being repeated over and over during the peace negotiations," stated Lee Kyoung-min, an analyst from Daishin Securities. Lee noted that investors are now shifting their focus from geopolitical tensions to the forthcoming earnings season.
In particular, South Korea's chip giant SK hynix is expected to release its first-quarter earnings this week, following Samsung Electronics' announcement of a record-breaking operating profit guidance earlier this month.
In terms of individual stocks, large-cap shares ended mixed, with sectors such as batteries and defense among the gainers. Market leader Samsung Electronics saw a slight decline of 0.69 percent to 214,500 won, while SK hynix rose by 3.37 percent to 1,166,000 won. Battery giant LG Energy Solution advanced 2.63 percent to 429,000 won on positive expectations for its energy storage system (ESS) business.
Defense-related stocks were buoyed by ongoing tensions in the Middle East. Hanwha Aerospace edged up 0.14 percent to 1,425,000 won, and LIG Defense and Aerospace climbed 5.14 percent to 921,000 won. On the downside, KB Financial declined 0.86 percent to 160,900 won, and bio firm Celltrion slipped 0.96 percent to 205,500 won.
The Korean won was quoted at 1,477.2 won against the U.S. dollar as of 3:30 p.m., reflecting an increase of 6.3 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 2.3 basis points to 3.348 percent, while the yield on the benchmark five-year government bonds decreased 1.2 basis points to 3.568 percent.