Kospi closes 1.65% higher on chip gains despite Middle East tensions
Seoul shares rose 1.65 percent as institutional buying lifted Samsung Electronics and other semiconductor stocks despite Middle East tensions and oil above $100.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 7,007.72 points on Sept. 21, up 113.49 points, or 1.65 percent, from the previous trading session.
YONHAP
Stocks rose Monday as investors scooped up semiconductor shares, offsetting concerns over renewed tensions in the Middle East and elevated oil prices. The won strengthened against the dollar.
The Kospi gained 113.49 points, or 1.65 percent, at 7,007.72.
The index extended its winning streak for the third consecutive session, buoyed by improving investor sentiment toward AI and semiconductor stocks.
Still, elevated crude oil prices remained a source of concern amid persistent inflationary and geopolitical risks in the Middle East. Brent crude traded over $100 a barrel.
Trade volume was light at 232.76 million shares worth 19.69 trillion won ($14.26 billion), with decliners outnumbering advancers 550 to 310.
Institutions bought a net 1.49 trillion won, while foreigners and individuals sold a net 181.89 billion won and 2.98 trillion won, respectively.
Investor sentiment toward AI-related stocks remained upbeat on expectations of continued strong demand, helping fuel gains in semiconductor shares.
"The local stock market was bullish as semiconductor shares rallied, led by institutional net buying," said Lee Kyoung-min, an analyst at Daishin Securities.
Samsung Electronics jumped 4.98 percent to 274,000 won, while SK hynix gained 0.59 percent to 1.87 million won.
SK Square, the parent company of SK hynix, surged 4.45 percent to 1.12 million won.
In contrast, automaker Hyundai Motor fell 1.64 percent to 359,000 won, while battery maker LG Energy Solution shed 3.3 percent to 352,000 won.
The won strengthened by 4.5 won from the previous session to stand at 1,381 won against the U.S. dollar as of 3:30 p.m.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 2.1 basis points to 4.056, and the return on the benchmark five-year government bonds increased 5 basis points to 4.275.
Yonhap
