Seoul's stock market surges to a new peak following the Federal Reserve's interest rate decrease
In a noteworthy development, the Korean stock market saw a strong performance today, with the benchmark Korea Composite Stock Price Index (KOSPI) reaching a new record high of 3,461.30. This marks a gain of 1.40 percent or 47.90 points.
Amidst this upward trend, Samsung Electronics, a cornerstone of the South Korean economy, made a significant leap. The tech giant surged by 2.94 percent, closing at 80,500 won - a level not seen in the past 13 months. This impressive rise can be attributed to expectations of improved earnings, fuelled by the current upward trend in memory chip prices.
The rise of Samsung Electronics was not an isolated event. Tech stocks in Seoul led the gains, with SK hynix also experiencing a substantial increase of 5.85 percent, closing at 353,000 won. Hyundai Motor, another major player in the tech sector, also saw a gain of 1.16 percent, closing at 218,500 won.
However, not all stocks followed the positive trend. Hanwha Aerospace fell 0.68 percent to 1,023,000 won, while HMM declined 2.13 percent to 23,000 won.
Trade volume was moderate, with 386.81 million shares worth 12.09 trillion won ($8.7 billion) changing hands. Institutions bought a net 428.9 billion won worth of shares, while individuals sold a net 779.7 billion won worth.
The main index advanced despite a mixed close on Wall Street, with the Dow Jones Industrial Average increasing 0.57 percent, and the tech-heavy Nasdaq composite falling 0.33 percent. The Korean won also depreciated against the US dollar, trading at 1,387.80 won against the greenback at 3:30 p.m.
In the broader market context, foreign investors bought a net 283.7 billion won worth of shares, indicating a positive sentiment towards the Korean market. However, challenges remain, including foreign investor concerns and regulatory pressures impacting Korean financial firms, such as those faced by Shinhan Investment & Securities. The CEO of Shinhan Securities Co., Kim Tae-tae, did not provide specific views on the current market situation in the report.
In the end, the KOSPI ended the day with 589 gainers to 262 losers, reflecting a generally optimistic sentiment among investors.
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