Seoul: South Korean stocks closed higher for the third consecutive session Wednesday, led by gains in market heavyweight Samsung Electronics and IT shares. The local currency was trading lower against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 21.89 points, or 0.74 percent, to end at 2,972.19.
According to Yonhap News Agency, trade volume was moderate at 568.6 million shares worth 14.4 trillion won (US$10.5 billion), with losers outnumbering winners 457 to 425. Foreign investors net purchased 272 billion won worth of local shares, and institutions bought 130.6 billion won, while retail investors unloaded 432 billion won in apparent profit-taking. Investors are focused on whether the KOSPI will reach the 3,000 mark for the first time in over three years this week despite the growing tensions in the Middle East.
Overnight, Wall Street lost ground on reports that U.S. President Donald Trump has called for Iran's "unconditional surrender" and warned people in Tehran to evacuate immediately, suggesting a possible escalation of tensions in the region. Iran has been engaging in a military conflict with Israel after the latter conducted preemptive airstrikes on Iranian nuclear facilities earlier this week.
Experts noted that foreign investors moved to buy IT shares following the Korean government's plan to make a significant investment in artificial intelligence (AI). Global investment bank JP Morgan recommended overweighting top search engine Naver in stock portfolios. On Sunday, President Lee Jae Myung appointed Ha Jung-woo, head of the Future AI Center at Naver, as the presidential secretary for AI policy, a new position.
Naver saw a rise of 17.92 percent to 243,500 won, while Kakao, the operator of the country's leading mobile messenger, increased 6.56 percent to 55,200 won. NHN, a notable IT and game company, also rose 10.46 percent to 32,200 won. Tech giant Samsung Electronics climbed 2.93 percent to 59,800 won, and leading nuclear power plant manufacturer Doosan Enerbility advanced 2.69 percent to 61,000 won.
Major oil refinery SK Innovation soared 10.98 percent to 101,100 won as the Israel-Iran conflict increased international oil prices. Conversely, chipmaking giant SK hynix fell 1 percent to 246,500 won, while defense industry leader Hanwha Aerospace dropped 2.83 percent to 927,000 won.
The local currency was quoted at 1,369.4 won against the greenback at 3:30 p.m., down 6.7 won from the previous session.