KOSPI – Seoul Stocks Hold Strong Gains as Chip Shares Attract Buyers
KOSPI – Seoul stocks remained sharply higher late Thursday morning after surrendering part of their early rally, as institutional and overseas investors returned to semiconductor shares following the recent market sell-off. Retail investors, however, took profits, limiting the advance in the benchmark index.
The Korea Composite Stock Price Index opened with a gain of 3.3 percent before easing. By 11:20 a.m., the KOSPI was up 150.61 points, or 2.08 percent, at 7,397.40 from the previous session, according to Yonhap News Agency.
Investors remain alert to global risks
Market participants continued to weigh concerns over rising geopolitical tensions in the Middle East and questions surrounding the outlook for artificial intelligence-related demand. Analysts said these factors could continue to influence trading sentiment despite the day’s recovery.
Wall Street offered a mixed lead overnight. The Dow Jones Industrial Average fell 1.09 percent, while the technology-focused Nasdaq Composite edged up 0.2 percent. The uneven performance in the United States reflected continued caution among investors over economic and geopolitical developments.
Institutions and foreigners support the rebound
Institutional investors purchased a net 985.8 billion won, equivalent to about US$655 million, in local equities during the morning session. Foreign investors also recorded net purchases of 144.9 billion won.
Individual investors moved in the opposite direction, selling a net 1.07 trillion won worth of shares. The trading pattern indicated that large investors were taking positions in stocks viewed as undervalued after the recent decline, particularly in the technology sector.
Semiconductor companies lead market gains
Technology shares were among the main drivers of the KOSPI’s advance. Samsung Electronics, the country’s largest listed company, gained 1.8 percent in late morning trade.
SK hynix rose 6.65 percent after reports that demand for its planned U.S. listing was more than seven times greater than the available shares. The company is a major supplier of memory chips used in advanced computing systems and artificial intelligence applications.
Other notable gainers included SK Telecom, which climbed 4.52 percent, and low-cost carrier Air Busan, which added 7.5 percent.
Automakers and defence shares move lower
Some major companies traded lower despite the broader market recovery. Hyundai Motor declined 2.38 percent, while Hanwha Aerospace fell 6.72 percent.
The differing performance across sectors highlighted the cautious mood in the market, with investors favouring selected technology stocks while reducing exposure to companies that had recently performed strongly.
Won weakens against the US dollar
The Korean won was quoted at 1,504.65 per US dollar at 11:20 a.m., down 2.25 won from the previous trading session. Currency movements remained under close watch as global uncertainty continued to affect risk-sensitive assets.
Separately, South Korea’s Ministry of Finance and Economy announced that it had issued 1.7 billion euros, or roughly US$1.94 billion, in euro-denominated foreign exchange stabilisation bonds.
The bonds, issued the previous day, have maturities of three and seven years. The ministry said the transaction was the country’s largest euro-denominated FX stabilisation bond sale to date.
Officials said the proceeds will help secure foreign currency resources and strengthen the government’s ability to respond to external financial pressures. The successful issuance was also seen as an indication of South Korea’s continued access to international capital markets.