Seoul: Seoul stocks closed slightly higher on Monday despite escalating tensions between the United States and Iran, as investor interest shifted towards the forthcoming earnings season. The local currency strengthened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 27.17 points, or 0.44 percent, to conclude at 6,219.09, after hitting a peak of 6,278.36 during the session. Trade volume was moderate, with 683.8 million shares valued at 22.3 trillion won (approximately US$15.1 billion) changing hands. Decliners outpaced advancers, with 533 stocks losing ground compared to 320 gainers.
Institutional investors emerged as net buyers, acquiring shares worth 181.7 billion won, while foreign and retail investors collectively sold a net 437.4 billion won. The index maintained positive momentum despite uncertainties surrounding U.S.-Iran peace talks, following the U.S. Navy's seizure of an Iranian cargo ship in the Gulf of Oman.
Lee Kyoung-min, an analyst at Daishin Securities, noted that the market is becoming less reactive to Middle Eastern geopolitical risks, as similar developments have become recurrent during peace discussions. Instead, investors are increasingly focused on the upcoming earnings season.
Anticipation surrounds SK hynix, South Korea's semiconductor leader, expected to announce its first-quarter earnings this week, following Samsung Electronics' recent release of a record-breaking operating profit forecast.
In the Seoul market, large-cap shares presented a mixed picture, with battery and defense sectors showing gains. Market leader Samsung Electronics saw a slight decline of 0.69 percent, closing at 214,500 won, whereas competitor SK hynix gained 3.37 percent, reaching 1,166,000 won.
LG Energy Solution, a key player in the battery sector, advanced by 2.63 percent to 429,000 won, driven by expectations for its energy storage system (ESS) business. Defense stocks also advanced due to ongoing Middle Eastern tensions, with Hanwha Aerospace edging up 0.14 percent to 1,425,000 won, and LIG Defense and Aerospace surging 5.14 percent to 921,000 won.
Conversely, some major financial and biotech stocks saw declines. KB Financial, a leading financial group, dropped 0.86 percent to 160,900 won, while biotechnology firm Celltrion decreased by 0.96 percent to 205,500 won.
The Korean won appreciated to 1,477.2 won against the U.S. dollar by 3:30 p.m., marking an increase of 6.3 won from the previous trading session.