Seoul stocks hit record high on U.S. tech earnings anticipation
KOSPI reaches new peak despite foreign and retail selling; Korean won weakens against the dollar
Quick Look
- The KOSPI index reached a record high of 6,641.02 on Tuesday, driven by optimism surrounding upcoming U.S. tech earnings.
- While institutional investors were net buyers, the Korean won depreciated against the U.S. dollar.
AI-generated summary
Seoul stocks closed at a new record high Tuesday, boosted by anticipation over the earnings releases of major U.S. tech companies. The Korean won fell against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 25.99 points, or 0.39 percent, to 6,641.02.
Trade volume was heavy at 1.1 billion shares worth 37.3 trillion won (US$25.3 billion). Winners slightly outnumbered losers 431 to 417.
Foreign and retail investors were net sellers, offloading a combined 315.2 billion won worth of shares. Institutional investors purchased a net 351.5 billion won.
The index once topped the 6,700-point mark, rising as high as 6,712.73 at one point, but trimmed earlier gains, as investors sat on the sidelines ahead of the earnings releases of the Magnificent 7, or M7, companies, due this week.
"The local market experienced a sectoral rotation, while semiconductors took a breather," said Lee Kyoung-min, an analyst at Daishin Securities.
On the Middle East front, peace talks between the United States and Iran still remain at a standstill.
But investors appear to remain resilient toward such noises between the U.S. and Iran, Lee said, as they are becoming less sensitive to developments in the Middle East, while risk appetite is running high.
Large-cap shares traded mixed, with auto and battery shares leading gains.
Market top-cap Samsung Electronics declined 1.11 percent to 222,000 won, while its chipmaking rival SK hynix inched up 0.62 percent to 1,300,000 won.
Carmakers were bullish, with industry leader Hyundai Motor adding 5.92 percent to 555,000 won and its sister company Kia advancing 1.9 percent to 155,600 won.
Battery companies were also in positive territory. LG Energy Solutions closed up 1.72 percent to 472,000 won, and Samsung SDI jumped 7.09 percent to 680,000 won.
Among the losers were shipbuilders, as investors went on to lock in profits.
HD Hyundai Heavy Industries fell 0.89 percent to 667,000 won, and Hanwha Engine, which produces engines for ships, dipped 8.36 percent to 81,100 won.
The Korean won was quoted at 1,474.1 won against the U.S. dollar as of 3:30 p.m., down 1.6 won from the previous session.
