Seoul: South Korean stocks reached a new record high on Wednesday, with the Korea Composite Stock Price Index (KOSPI) closing above the 6,400 level. This rise was fueled by a positive corporate earnings outlook, despite uncertainties surrounding U.S.-Iran peace negotiations. The South Korean won, however, depreciated against the U.S. dollar.
According to Yonhap News Agency, the KOSPI climbed 29.46 points, or 0.46 percent, finishing at 6,417.93. This marks the third consecutive session of gains and surpasses the previous high of 6,388.47 set on Tuesday. The index had a cautious start due to concerns over Middle East developments, despite U.S. President Donald Trump's extension of the ceasefire pending Tehran's "unified proposal."
Trade volume was substantial, with 892.4 million shares exchanged, valued at 30.7 trillion won (US$20.8 billion). There were more decliners than advancers, with 464 stocks losing ground compared to 396 gainers. Individual investors were the main drivers of the rally, purchasing a net 1.24 trillion won in stocks, while foreign and institutional investors sold a net 674.9 billion won and 444.4 billion won, respectively.
U.S. stocks experienced a decline following U.S. Vice President JD Vance's cancellation of a trip to Pakistan, where U.S.-Iran negotiations were anticipated. The Dow Jones Industrial Average and the Nasdaq composite both decreased by 0.59 percent.
Kang Jin-hyuk, an analyst at Shinhan Securities, observed that after Trump's ceasefire extension, investors engaged in bargain hunting, selling major stocks like Samsung Electronics and SK hynix. Battery and electronics component shares led the market, buoyed by expectations of robust first-quarter earnings.
LG Energy Solution rose 1.36 percent to 484,500 won, while Samsung SDI increased by 2.17 percent to 659,000 won. Samsung Electro-Mechanics saw a significant jump of 5.18 percent to 812,000 won, and LS Electric advanced 5.14 percent to 194,200 won. Defense companies also performed well, with Hanwha Aerospace rising 1.8 percent to 1.4 million won and LIG D and A soaring 12.21 percent to 1.02 million won. Shipbuilders were strong, with HD Hyundai Heavy Industries surging 11.28 percent to 641,000 won and Hanwha Ocean adding 2.9 percent to 135,000 won.
Conversely, semiconductor stocks finished lower, with Samsung Electronics falling 0.68 percent to 217,500 won and SK hynix dropping 0.08 percent to 1.2 million won, ahead of its first-quarter earnings release this week. KB Financial Group and CJ Cheiljedang also saw declines, slipping 1.87 percent to 157,400 won and 1.47 percent to 234,000 won, respectively.
The Korean won was quoted at 1,476 won per U.S. dollar at 3:30 p.m., a decrease of 7.5 won from the previous session. Bond prices decreased as well, with the yield on three-year Treasurys rising 3.5 basis points to 3.365 percent, and the yield on the benchmark five-year government bonds increasing 2.1 basis points to 3.562 percent.