Seoul: Seoul shares surged over 3.5 percent on Wednesday, driven by reduced concerns regarding artificial intelligence (AI) investments and optimism about a potential interim agreement between the United States and Iran concerning the Strait of Hormuz.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) climbed 3.76 percent, or 239.31 points, closing at 6,598.26, after hitting an intraday peak of 6,674.66. This gain follows a 1.62 percent rise on Tuesday, which came after a 5.12 percent plunge the previous day. The trading volume was moderate, with 335.16 million shares valued at 25.21 trillion won (approximately US$17.7 billion), and advancing stocks outnumbered declining ones by 672 to 197.
Foreign investors purchased a net 1.45 trillion won in stocks, while institutional investors and individual investors sold 283.5 billion won and 1.18 trillion won, respectively. The Korea Exchange (KRX) implemented a buy-side sidecar for the KOSPI for five minutes at 9:25 a.m. as the index rose sharply due to gains in technology stocks.
In the United States, stocks advanced overnight as investors speculated that an agreement to reopen the critical shipping route could contribute to a continued decline in oil prices and alleviate inflationary pressures. The Dow Jones Industrial Average increased by 1.71 percent to 54,085.88, while the Nasdaq Composite, known for its technology focus, rose 2.59 percent to 26,584.99.
Kang Jin-hyeok, an analyst at Shinhan Securities Co., noted, "On top of Hormuz reopening hopes, robust earnings from U.S. tech firms helped ease concerns over heavy investment in the AI sector." In Seoul, technology stocks were the primary drivers of the index's gains.
Samsung Electronics, a market leader, saw its shares rise by 2.5 percent to 246,000 won, while SK hynix, a competitor in the chipmaking sector, saw its stock increase by 5.77 percent to 1,668,000 won. Hyundai Motor, a leading car manufacturer, experienced a 3.06 percent rise to 404,500 won, and Korean Air, the national flag carrier, gained 3.07 percent to 26,900 won.
However, not all sectors saw gains. SK Innovation, a leading refiner, dropped by 1.89 percent to 109,200 won, and S-Oil decreased by 2.62 percent to 122,500 won. The Korean won was quoted at 1,424.5 won against the U.S. dollar as of 3:30 p.m., a decrease of 8 won from the previous day's stock trading close.