Seoul: Seoul shares extended their rally to the fifth straight session Thursday to set a fresh record high, despite profit-taking following recent sharp gains in technology, defense, and shipbuilding stocks. The Korean won fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.31 points, or 0.03 percent, to finish at 4,552.37.
According to Yonhap News Agency, trade volume was moderate at 429.55 million shares worth 26.76 trillion won (US$18.4 billion), with losers outnumbering gainers 728 to 175. Retail investors purchased a net 1.26 trillion won worth of stocks, offsetting net selling by institutions and foreigners of 1.39 trillion won and 103.28 billion won, respectively. Foreign investors turned net sellers after buying 1.25 trillion won worth of stocks the previous day.
Overnight, U.S. stocks presented mixed results. The Dow Jones Industrial Average fell by 0.94 percent, while the tech-heavy Nasdaq composite increased by 0.16 percent. The market seemed to pause as investors cashed in part of their gains, though the KOSPI could potentially reach the 4,600-point mark soon, contingent upon companies' fourth-quarter earnings results, analysts indicated.
"The latest tech rally is expected to continue for the time being on strong chip demand amid an artificial intelligence boom," stated Na Jeong-won, an analyst at NH Securities Co. He also noted that defense, shipbuilding, and securities stocks are likely to bolster the main index due to their robust earnings outlook.
Shipbuilding and defense stocks propelled the gains, with leading shipbuilder HD Hyundai Heavy Industries rising 4.49 percent to 582,000 won, and defense giant Hanwha Aerospace soaring 7.92 percent to 1.09 million won. Korea Aerospace Industries, the nation's sole aircraft manufacturer, advanced 4.92 percent to 142,800 won.
Among the decliners, market leader Samsung Electronics dropped 1.56 percent to 138,800 won, despite projecting record fourth-quarter earnings, while top automaker Hyundai Motor decreased by 2.85 percent to 340,500 won.
The local currency was quoted at 1,450.60 won against the U.S. dollar at 3:30 p.m., down 4.8 won from the previous session. Bond prices, which move inversely to yields, concluded higher, with the yield on three-year Treasurys falling 0.8 basis point to 2.902 percent, and the return on benchmark five-year government bonds declining 2.2 basis points to 3.163 percent.