Seoul: South Korean stocks ended Thursday nearly unchanged, as investors exercised caution ahead of the anticipated U.S. inflation data release later in the week and expressed concerns over potentially "highly valued" stock markets. Meanwhile, the Korean won weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) decreased by 1.03 points, or 0.03 percent, closing at 3,471.11. The trading volume was moderate with 289 million shares, valued at 12.4 trillion won (US$8.9 billion). There were 533 decliners compared to 335 gainers.
Retail investors took profits by selling local shares worth 541 billion won, while foreign and institutional investors acquired shares worth 184.5 billion won and 268.7 billion won, respectively. Wall Street closed lower the previous night after Federal Reserve Chair Jerome Powell commented on the high valuation of equity prices and the Fed's monitoring of policy impacts on financial conditions. Powell also highlighted the significant economic activity driven by the artificial intelligence (AI) sector, raising concerns about a potential AI bubble.
Analyst Lee Kyoung-min from Daishin Securities noted that the global AI momentum and semiconductor industry tailwinds, which had recently driven the KOSPI rally, appeared to have peaked in the short term, leading to a pause in the index's performance. Lee also mentioned the rising uncertainties due to the upcoming release of the U.S. Personal Consumption Expenditures Price Index and ongoing trade negotiations between Seoul and Washington.
The Korean won weakened to a two-month low against the U.S. dollar. In the stock market, Samsung Electronics rose 0.82 percent to 86,100 won, while SK hynix fell 0.28 percent to 356,500 won. LG Energy Solution increased 3.88 percent to 361,500 won, and POSCO Future M jumped 5.42 percent to 145,900 won.
Naver surged 11.4 percent to 254,000 won following reports of its plans to acquire Dunamu Inc., South Korea's largest cryptocurrency exchange operator, to expand into the digital finance sector. Kakao, which operates the country's leading mobile messenger, increased 0.64 percent to 63,200 won.
Conversely, Samsung Biologics fell 2.29 percent to 1.02 million won, and Doosan Enerbility dropped 2.88 percent to 64,000 won. SK Square, an AI investment firm, declined 2.99 percent to 211,000 won. Defense sector companies also saw losses, with Hanwha Aerospace down 0.95 percent to 1.05 million won and Hyundai Rotem down 4.17 percent to 218,500 won.
The local currency was quoted at 1,400.6 won against the U.S. dollar at 3:30 p.m., a decrease of 3.1 won from the previous session.