Seoul: Seoul shares ended a three-day losing streak on Friday, as investor concerns over a potential bubble in the artificial intelligence (AI) sector were eased by strong earnings from Broadcom on Wall Street. The local currency, however, weakened against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) climbed 56.54 points, or 1.38 percent, closing at 4,167.16. Trade volume was moderate, with 421 million shares worth 16.3 trillion won (approximately US$11 billion) changing hands. Gainers outnumbered losers 655 to 221.
Foreign investors were net buyers, purchasing 41.3 billion won worth of local shares. Conversely, individual investors sold a net 1.46 trillion won, while institutions bought a net 1.41 trillion won. Analysts noted that Broadcom's better-than-expected earnings helped alleviate fears of an AI sector bubble, which had arisen after a significant rally in major technology stocks this year.
Han Ji-young, a researcher at Kiwoom Securities, stated, "The strategy of expanding exposure to AI-related stocks will remain valid." Meanwhile, the Korea Exchange's issuance of a warning advisory on SK hynix Inc. was not expected to significantly impact the overall performance of chipmakers. "The current conditions in the semiconductor industry, its upward cycle, and the earnings consensus remain intact," Han added.
SK hynix shares rose 1.06 percent to 571,000 won, despite the advisory, which restricts margin trading on stocks that have shown sharp gains. Samsung Electronics increased by 1.49 percent to 108,900 won, while LG Energy Solution saw a slight decline of 0.11 percent to 445,500 won.
In contrast, Samsung Fire and Marine Insurance experienced a steep drop of 22.3 percent to 489,500 won, following an unexplained 28.31 percent gain the previous day. Among automotive stocks, Hyundai Motor rose 2.03 percent to 301,500 won, and Kia increased by 2.36 percent to 125,800 won. Hanwha Aerospace also saw a significant rise of 6.31 percent to 961,000 won.
The local currency was quoted at 1,473 won against the U.S. dollar at 3:30 p.m., marking a decrease of 0.7 won from the previous session.