South Korean Stocks End Sharply Higher for Third Straight Session
KOSPI gains 3.68 percent as foreign and institutional investors buy major chipmakers; buy-side sidecar activated.
Quick Look
South Korean stocks ended sharply higher for the third consecutive session on Wednesday, driven by heavy buying of major chipmakers by foreign and institutional investors.
AI-generated summary
Why It Matters
South Korean stocks gained following foreign and institutional investments in major technology and semiconductor heavyweights.
SEOUL, Aug. 12 (Yonhap) -- South Korean stocks ended sharply higher for the third straight session Wednesday as investors scooped up major chipmakers. The Korean won gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 233.51 points, or 3.68 percent, to close at 6,579.04, following 0.65 percent and 0.73 percent gains in the previous two sessions.
After opening 1.47 percent higher, the KOSPI further added gains as foreigners and institutions scooped up major chip heavyweights.
At 11:57 a.m., the bourse operator activated a buy-side sidecar. Program trading for the KOSPI-listed shares was suspended for five minutes.
Trade volume was moderate at 355 million shares worth 26.21 trillion won (US$18.49 billion) trading hands, with losers outnumbering gainers 477 to 378.
Foreigners and institutions purchased a net 2.83 trillion won and 527.7 billion won worth of stocks, respectively, while retail investors alone offloaded a net 3.19 trillion won in shares.
"Large order backlogs and new orders reaffirmed that investment in artificial intelligence (AI) infrastructure and semiconductor demand remain solid, stimulating investor sentiment," Lee Kyung-min, an analyst at Daishin Securities, said.
Overnight, the Dow Jones Industrial Average fell 0.34 percent, while the S&P 500 declined 0.32 percent to 7,728.2. The Nasdaq composite shed 0.60 percent.
In Seoul, large-cap stocks finished higher.
Semiconductor heavyweight Samsung Electronics shot up 6.68 percent to 255,000 won per share and its rival SK hynix gained 5.54 percent to 1.5 million won.
SK Square, the parent of SK hynix, jumped 8.36 percent to 1.02 million won, and Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, increased 5.78 percent to 1.34 million won.
LG Energy Solution went up 1.13 percent to 358,500 won, and No. 1 automaker Hyundai Motor increased 1.61 percent to 409,500 won.
The Korean won was quoted at 1,415.7 won against the U.S. dollar at 3:30 p.m., up 0.3 won from the close of stock trading the day before.
Open Questions
- Will foreign buying trends continue in upcoming sessions?
