SEOUL– Seoul stocks surged over 1.5 percent to snap a four-day losing streak Wednesday as foreigners snatched up shares of Samsung Electronics and other chipmakers.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 37.3 points, or 1.68 percent, to close at 2,255.98 points. The Korean won fell against the U.S. dollar.
Trading volume was moderate at about 405.6 million shares worth some 6.4 trillion won (US$5 billion). Gainers outnumbered losers 651 to 224.
The KOSPI got off to a weak start but soon turned higher, as foreigners scooped up tech shares.
Foreigners and institutional investors were net buyers at a combined net 261.9 billion won, while retail investors sold off a net 297.2 billion won.
“Some 70 percent of Wednesday’s rise was from Samsung Electronics and SK hynix. Foreign investors bought some 160 billion won worth of the two companies,” said analyst Lee Kyoung-min from Daishin Securities.
“The two were also boosted by news that China could pause its massive investments for homegrown chipmakers,” he said.
In Seoul, most market heavyweights closed higher.
Market bellwether Samsung Electronics jumped 4.33 percent to 57,800 won, and No. 2 chipmaker SK hynix surged 7.14 percent to 81,000 won.
Battery maker LG Energy Solution was up 0.57 percent at 443,000 won, bio firm Celltrion added 0.94 percent to 160,500 won, and top automaker Hyundai Motor advanced 0.94 percent to 160,500 won.
Food and confectionary makers lost ground. Top food maker CJ CheilJedang dropped 5.42 percent to 349,000 won, and instant noodle maker Nongshim fell 3.57 percent to 338,000 won.
The local currency closed at 1,271.7 won against the U.S. dollar, down 0.7 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys was down 2.9 basis points to 3.632 percent, and the return on the benchmark five-year government bond dipped 5.8 basis points to 3.616 percent.
Source: Yonhap News Agency