South Korean stocks closed higher on Friday, extending their winning streak to a second consecutive session, as semiconductor shares rallied following overnight gains on Wall Street. The local currency also gained ground against the U.S. dollar.
Market Overview
The benchmark Korea Composite Stock Price Index (KOSPI) added 184.03 points, or 2.52 percent, to close at 7,475.94. This marked a significant increase from the previous session, with trade volume moderate at 449.53 million shares worth 31.16 trillion won (US$20.73 billion). Gainers far outnumbered losers 799 to 92, indicating a strong bullish sentiment in the market.
Institutions purchased a net 1.13 trillion won worth of shares, while individuals and foreigners sold a net 772.82 billion won and 322.56 billion won, respectively. This shift in investor behavior suggests that foreign investors turned net sellers after two consecutive sessions of net buying.
Market Sentiment
Investor sentiment improved after U.S. stocks closed higher overnight, supported by a strong rebound in semiconductor shares and easing oil prices. The Dow Jones Industrial Average gained 0.27 percent, while the S&P 500 rose 0.81 percent. The tech-heavy Nasdaq Composite climbed 1.3 percent, driven by a rally in semiconductor stocks.
Lee Kyung-min, an analyst at Daeshin Securities, attributed the improved investor sentiment toward the semiconductor sector to Meta’s capital spending plans and Micron’s investment outlook. These factors helped ease concerns about the industry’s prospects, leading to a surge in semiconductor stocks.
Key Performers
Large-cap stocks finished broadly higher, with semiconductor heavyweight Samsung Electronics going up 2.52 percent to 285,000 won. In contrast, SK hynix edged down 0.27 percent to 2.18 million won after opening higher. The company is set to make its debut on the tech-heavy Nasdaq through the listing of its American depositary receipts (ADRs).
Artificial intelligence investment firm SK Square advanced 6.18 percent to 1.41 million won, while chip components maker Samsung Electro-Mechanics gained 6.1 percent to 1.58 million won. These gains indicate a strong interest in the sector, driven by the potential for growth and innovation.
Currency and Bond Markets
The Korean won was quoted at 1,501.4 won against the U.S. dollar at 3:30 p.m., up 4.7 won from the previous session. This indicates a strengthening of the local currency against the U.S. dollar.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys went down 1 basis point to 3.768 percent, and the return on the benchmark five-year government bonds lost 0.8 basis point at 4.008 percent.
