Seoul: South Korean stocks recorded a significant rise for the fourth consecutive session on Thursday, driven by substantial investments in major chipmakers. Alongside this rally, the Korean won strengthened against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) climbed by 234.3 points, or 3.56 percent, concluding the day at 6,813.34. This follows gains of 0.65 percent, 0.73 percent, and 3.68 percent over the previous three sessions. The index initially opened 2.96 percent higher, with foreign and institutional investors showing a strong appetite for chip industry stocks.
The trading session saw moderate activity, with 416 million shares exchanged, amounting to a value of 34.45 trillion won (US$24.22 billion). Despite the market's rise, the number of declining stocks surpassed those advancing, with 532 losers compared to 332 gainers. Foreign investors acquired a net 2.09 trillion won in shares, while institutions purchased 679.8 billion won. Meanwhile, retail investors were net sellers, offloading 2.71 trillion won worth of stocks.
In global markets, U.S. stocks related to the artificial intelligence sector observed gains overnight. The S and P 500 increased by 0.26 percent, nearing a record high, and the Nasdaq composite rose by 0.54 percent. Conversely, the Dow Jones Industrial Average saw a minor decline of 0.04 percent. Analyst Kang Jin-hyeok from Shinhan Securities Co. noted that strong foreign buying was supported by the U.S. consumer price index meeting expectations and robust earnings reports from AI infrastructure firms.
Within Seoul, major stocks posted impressive performances. Samsung Electronics, a leader in the semiconductor industry, surged 4.89 percent to 268,000 won per share, while SK hynix increased by 5.91 percent to 1.59 million won. SK Square, SK hynix's parent company, saw its shares rise by 9.08 percent to 1.12 million won, and Samsung Electro-Mechanics, an affiliate of Samsung Electronics, soared by 12.58 percent to 1.5 million won. LG Energy Solution climbed 1.95 percent to 365,500 won, and Hyundai Motor, the country's top automaker, advanced 2.1 percent to 418,500 won.
The Korean won was valued at 1,419.4 against the U.S. dollar at 3:30 p.m., marking an increase of 3.7 won from the previous day's close. In the bond market, prices rose as yields fell; the yield on three-year Treasurys decreased by 1 basis point to 3.781 percent, and the yield on five-year government bonds declined by 0.9 basis points to 4.016 percent.