Seoul Stocks Extend Winning Streak as Chip Shares Rally
South Korea’s benchmark KOSPI rose 1.21 percent for a fourth consecutive gain, supported by major semiconductor stocks despite profit-taking by foreign and individual investors.
South Korean shares advanced for a fourth consecutive session on Wednesday, with gains in major semiconductor companies helping the benchmark index close above 7,000 ahead of the Chuseok holiday break.
The Korea Composite Stock Price Index rose 63.01 points, or 1.21 percent, to finish the regular session at 7,080.92. The market had opened nearly 2 percent higher but surrendered part of that advance as foreign and individual investors sold large technology stocks to secure profits.
The move followed another record close for the technology-heavy Nasdaq Composite in the United States. The Nasdaq gained 0.45 percent on Tuesday, while the Dow Jones Industrial Average fell 0.36 percent and the S&P 500 slipped 0.06 percent. Continued enthusiasm for companies tied to artificial intelligence supported sentiment in Seoul. Hopes that tensions between the United States and Iran could ease also helped, as diplomatic efforts to resolve the Middle East standoff contributed to lower global oil prices.
Trading remained relatively light before the domestic market’s closure on Thursday and Friday for Chuseok. A Daishin Securities analyst said investors adopted a wait-and-see approach ahead of the holiday and noted that foreign and institutional selling limited the index’s gains.
A total of 217.4 million shares changed hands, with turnover reaching 20.8 trillion won. Market breadth was weaker than the headline index suggested: 546 stocks declined, while 310 advanced. The figures showed that the index’s rise was concentrated in a relatively narrow group of influential shares rather than spread broadly across the market. Individual investors sold a net 1.4 trillion won of shares, and foreign investors recorded net sales of 51 billion won. Institutions purchased a net 31.6 billion won.
Large-cap stocks delivered mixed results, but the biggest chipmakers ended higher. Samsung Electronics gained 3.25 percent to close at 285,500 won. SK hynix rose 1.2 percent to 1.86 million won after a stronger opening, while SK Square, its parent company, jumped 5.03 percent to 1.19 million won.
The South Korean currency was quoted at 1,358.4 won per U.S. dollar at 3:30 p.m. The combination of chip-sector strength and a firmer won provided support to the broader market, even as profit-taking and the approaching holiday kept investors cautious.