Seoul — South Korean stocks closed higher on Friday, defying a global market downturn that saw significant losses in U.S. markets. The local surge was propelled by gains in technology and financial sectors, despite adverse international cues.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced by 27.71 points, or 1.05 percent, to close at 2,656.33.
According to Yonhap News Agency, around 443 million shares worth approximately 9.93 trillion won (US$7.21 billion) were traded, with the number of advancing stocks outpacing decliners 460 to 405.
The positive market sentiment in Seoul was partly attributed to institutional and foreign investors who collectively purchased a net 537 billion won worth of shares, while retail investors sold off 560 billion won. This investment behavior contrasts sharply with the previous session’s 1.76 percent drop in the KOSPI.
Han Ji-young, an analyst at Kiwoom Securities, explained that the KOSPI's rise was buoyed by the perception of an oversold market in the previous session and ongoing discussions about a potential two-year deferral in imposing financial investment income taxes. Notable gains were seen in key sectors; Samsung Electronics rose by 0.52 percent and SK hynix jumped by 4.22 percent, while financial giants KB Financial and Shinhan Financial saw increases of 9.67 percent and 7.47 percent, respectively.
However, the day was not favorable for all sectors, as battery and energy shares saw declines, with LG Energy Solution and SK Innovation falling slightly.
The local currency, the Korean won, also strengthened against the U.S. dollar, ending the day at 1,375.30 won, marking a slight appreciation from the previous close.