Seoul: Seoul stocks ended their four-day losing streak on Wednesday, closing significantly higher as investors sought out major tech shares and semiconductors. The Korean won, however, weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) saw an increase of 90.71 points, or 1.37 percent, reaching 6,717.97 by the end of the trading day. Despite the positive movement, trade volume was relatively light, with 197.7 million shares traded valued at 15.9 trillion won (approximately US$11.6 billion). There were more losers than gainers on the day, with 576 stocks declining compared to 303 advancing.
Institutional investors played a key role in the market's recovery, acting as net buyers with purchases amounting to 1.21 trillion won. Meanwhile, retail and foreign investors adopted a selling stance, collectively unloading 2.87 trillion won in shares. Lee Kyoung-min, an analyst at Daishin Securities, noted that investors perceived the recent decline in the KOSPI as excessive, prompting a focus on semiconductor giants due to the continued positive outlook for memory products.
Investors are now looking ahead to the U.S. Federal Reserve's policy meeting, where a decision on interest rates is anticipated. In the Seoul market, semiconductor stocks saw gains, while other major sectors experienced declines.
Leading the charge, Samsung Electronics saw a rise of 2.01 percent to 253,500 won, and SK hynix surged 4.08 percent to 1,759,000 won. Conversely, Hyundai Motor fell 1.36 percent to 362,000 won, Hanwha Aerospace decreased by 0.75 percent to 1,055,000 won, and Celltrion slipped 0.17 percent to 177,200 won.
The Korean won was quoted at 1,368.6 against the dollar as of 3:30 p.m., a decrease of 9.2 won compared to the previous session's close. In the bond market, prices rose, and the yield on three-year Treasurys increased by 3.8 basis points to 4.053 percent, while the yield on five-year government bonds fell by 5.7 basis points to 4.288 percent.