Seoul: South Korean stocks closed higher Monday as investors awaited for Samsung Electronics' first-quarter earnings guidance this week, while they digested Washington's renewed threat on Iran. The Korean won fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 73.03 points, or 1.36 percent, to 5,450.33.
According to Yonhap News Agency, trading volume was moderate at 1.08 billion shares, with a total value of 19.8 trillion won (US$13.1 billion), with losers outnumbering gainers 512 to 353. Foreigners sold a net 159.7 billion won, and individuals offloaded a net 1 trillion won. Institutions bought a net 837.1 billion won.
Over the weekend, U.S. President Donald Trump warned of striking Iran's bridges and power plants unless Tehran opens the crucial Strait of Hormuz, setting a deadline for Tuesday evening (U.S. time). Investors, however, were seen maintaining optimism on technology shares, with Samsung Electronics set to release its preliminary first-quarter report on Tuesday. Some market watchers anticipate its operating profit to surpass the 40 trillion-won mark for the first time.
"Investors' hopes over listed firms' performances are still valid," Lee Kyoung-min, a researcher at Daishin Securities, said, noting expectations for Samsung Electronics' performance have lifted the overall index. "Geopolitical concerns over the Middle East and expectations for earnings reports are mixed, leading to differentiation among sectors," Lee said.
Top tech giant Samsung Electronics jumped 3.71 percent to 193,100 won, and SK hynix rose 1.14 percent to 886,000 won. Poongsan, South Korea's leading producer of copper alloys, shot up 12.91 percent to 109,300 won on reports that Hanwha Aerospace is seeking to take over its ammunition business.
Carmakers closed mixed, with Hyundai Motor losing 0.42 percent to 469,000 won, and its sister Kia adding 0.93 percent to 151,600 won. Top battery maker LG Energy Solution climbed 3.51 percent to 412,500 won, and Samsung SDI increased 3.42 percent to 453,500 won.
The local currency was quoted at 1,506.3 won against the U.S. dollar as of 3:30 p.m., down 1.1 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.6 basis points to 3.432 percent, and the return on the benchmark five-year government bonds shed 2.8 basis points to 3.594 percent.