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Seoul shares up for 2nd day on bargain hunting amid uncertainties

Published: 22 Aug. 2025, 17:53

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,168.73 points on Aug. 22, up 26.99 points, or 0.86 percent, from the previous trading session. [NEWS1]

Shares closed higher for two days in a row on Friday as investors scooped up blue-chip shares at bargain rates amid heightened uncertainties ahead of key global events. The won was trading higher against the dollar.

The benchmark Kospi climbed 26.99 points, or 0.86 percent, to close at 3,168.73.

Trade volume was slim at 233.9 million shares worth 8.21 trillion won ($5.89 billion), with winners slightly outnumbering losers 461 to 410.

Institutional and foreign investors purchased local shares worth 159.1 billion won and 180.6 billion won, respectively, while retail investors alone offloaded a net 458.5 billion won.

The index opened sharply higher, rising more than 1 percent, on the back of strong institutional and foreign buying. However, it pared some early gains amid choppy trading throughout the session.

Overnight, U.S. stocks declined as investors await remarks from U.S. Federal Reserve Chair Jerome Powell to provide clues about the likelihood of a rate cut in September.

Lee Kyung-min, an analyst at Daishin Securities, said the index is gaining upward momentum ahead of key global events, including Powell's upcoming speech at the Jackson Hole symposium.

"Optimism surrounding the upcoming Korea-U.S. summit is also lending support to the Kospi," Lee said, adding that related sectors and companies are now leading the rebound as bargain hunting picks up.

In Seoul, most large-cap shares traded higher, with the chip and defense sectors leading the gains.

Chip giant Samsung Electronics increased 1.13 percent to 71,400 won, while its rival SK hynix gained 2.45 percent at 251,000 won, snapping a five-day losing streak.

In contrast, leading battery maker LG Energy Solution went down 1.34 percent to 367,500 won.

Defense and shipbuilding shares closed strong ahead of President Lee Jae Myung's visit to the United States next week.

Defense powerhouse Hanwha Aerospace jumped 6.83 percent to 891,000 won to continue a two-day winning streak, and smaller player Hyundai Rotem gained 4.14 percent to 181,000 won.

Leading shipbuilder HD Hyundai Heavy Industries also gained 2.33 percent at 483,000 won.

The local currency was quoted at 1,393.65 won against the greenback at 3:30 p.m., down 0.33 percent from the previous session's 3:30 p.m. quote of 1,398.3 won.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys increased 1.8 basis points to 2.456 percent, while the return on the benchmark five-year government bonds went up 1.9 basis points to 2.624 percent.

Yonhap