Seoul: South Korean stocks ended higher on Friday, fueled by significant gains in large-cap technology shares, particularly Samsung Electronics and SK hynix. The local currency also appreciated against the U.S. dollar as the country intensified efforts to stabilize the foreign exchange market.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 21.06 points, or 0.51 percent, to close at 4,129.68. The trade volume was moderately heavy with 502.7 million shares valued at 16 trillion won (US$11.1 billion), with losers outnumbering winners 639 to 246.
Foreign investors and institutions made net purchases of 1.78 trillion won and 388 billion won in local shares, respectively, while retail investors sold off 2.2 trillion won. The KOSPI's upward trend mirrored gains on Wall Street, where the Dow Jones Industrial Average rose 0.6 percent and the Nasdaq composite increased by 0.22 percent.
Lee Jae-won, an analyst at Shinhan Securities, noted that the KOSPI's rise was attributed to an influx of foreign capital amid reduced concerns over an artificial intelligence bubble, with foreign investments primarily targeting semiconductor stocks.
Samsung Electronics saw a 5.31 percent surge to reach a record high of 117,000 won after reports of its independent development of a graphic processing unit for smartphones. Similarly, SK hynix's shares climbed 1.87 percent to 599,000 won. SK Square, an AI investment firm, jumped 4.21 percent to 334,500 won following the lifting of an investment warning.
Mirae Asset Securities experienced a nearly 21 percent increase, driven by expectations of benefiting from SpaceX's anticipated initial public offering next year, having invested approximately 200 billion won in the U.S. space company.
Conversely, LG Energy Solution, a leading battery maker, fell 1.79 percent to 383,500 won, and power plant manufacturer Doosan Enerbility dipped 3.5 percent to 73,600 won. Shipbuilding and IT shares also declined, with HD Hyundai Heavy, Hanwha Ocean, and HD Korea Shipbuilding experiencing losses.
The Korean won was quoted at 1,440.3 against the U.S. dollar, marking a sharp increase of 9.5 won from the previous session's close. The currency had previously dipped below the 1,440-won mark amid news of the National Pension Service resuming strategic foreign exchange hedging to stabilize the market.
South Korean foreign exchange authorities issued a verbal intervention on Wednesday as the won approached its weakest level against the dollar in 16 years. Bond prices fell, with the yield on three-year Treasurys rising by 1.9 basis points to 2.958 percent, and the yield on five-year government bonds increasing by 2.9 basis points to 3.240 percent.