Seoul: Seoul stocks advanced by more than 2 percent Friday on eased inflation woes. The local currency rose against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) closed up 178.82 points, or 2.66 percent, at 6,894.23.
According to Yonhap News Agency, trade volume was moderate at 321.35 million shares worth 25.56 trillion won (US$18.5 billion). However, losers outnumbered winners 463 to 407. Lee Kyoung-min, an analyst from Daishin Securities, noted that the KOSPI has managed to overcome macroeconomic concerns, with foreign investors making a comeback to the local market, driven by artificial intelligence (AI) momentum.
The rise in stock prices is attributed to the recent drop in oil prices and reduced inflation fears following the Federal Reserve's decision to increase the base rate by a quarter percentage point for the first time in over three years. Foreign investors, who had been net sellers for seven consecutive days, turned to net buyers, acquiring a net 424.6 billion won. Institutional investors also purchased a net 1.5 trillion won, while retail investors sold off a net 3.59 trillion won.
Market heavyweights showed mixed performances. Samsung Electronics, the top-cap company, saw a gain of 3.37 percent to 261,000 won, and rival SK hynix surged by 6.42 percent to 1,857,000 won. These chip companies benefited from positive sentiments about AI memories, spurred by comments from Nvidia's CEO Jensen Huang, suggesting that chip sales volume next year will double from this year's levels.
Conversely, LG Energy Solution saw a slight decline of 0.27 percent to 364,000 won. KB Financial and HD Hyundai Heavy Industries also faced declines, shedding 2.4 percent to 174,900 won and 2.02 percent to 460,000 won, respectively. Meanwhile, the Korean won was quoted at 1,383.3 won against the U.S. dollar as of 3:30 p.m., marking an increase of 1.1 won from the previous trading session.