A screen in the trading room of Hana Bank in central Seoul shows that the Kospi closed at 2,681.00 points on Monday, up 0.25 percent or 6.69 points from the previous trading session. (YONHAP)
Stock prices rose on Monday as investors speculated on an interest rate cut in the US. The national currency gained slightly against the dollar.
The leading index Kospi rose by 6.69 points or 0.25 percent and closed at 2,681.00.
Trading volume was moderate at 262.5 million shares valued at 8.5 trillion won ($6.35 billion), with losers outnumbering gainers by a ratio of 534 to 325.
Foreign investors ended their six-day selling streak and bought domestic stocks worth a net 239 billion won, while institutions also bought 158.5 billion won. Retail investors sold a net 416 billion won.
The index opened in negative territory, with major technology stocks suffering losses following last week’s worse-than-expected earnings report from artificial intelligence giant Nvidia.
“The market has changed color and is now no longer sensitive to inflation but sensitive to economic fundamentals,” said Han Ji-young, analyst at Kiwoom Securities.
The analyst pointed out that upcoming US labor market data could lead to a downturn in the stock market if it falls short of market expectations.
“However, unlike in the past, the negative impact on stock prices and its duration are likely to be limited,” Han said.
Many market experts are predicting a recovery in global stock prices following the highly anticipated interest rate cut in the US.
The US Federal Reserve is expected to hold its interest rate meeting on September 17 and 18.
In Seoul, large caps closed mixed.
Samsung Electronics rose 0.13 percent to 74,700 won, SK hynix rose 0.17 percent to 174,000 won.
Shares of battery manufacturers rose sharply: LG Energy Solution rose 6.19 percent to 412,000 won, Samsung SDS rose 1.26 percent to 152,600 won.
Hyundai Motor fell 3.72 percent to 246,000 won, while Kia was unchanged at 106,100 won.
The national currency was trading at 1,338.4 won against the greenback at 3:30 p.m., 2.40 won more than in the previous session. The Kosdaq gained 1.55 points or 0.20 percent and closed at 769.21.
Bond prices, which move inversely to yields, fell. The yield on three-year U.S. Treasury notes rose 3.6 basis points to 2.989 percent, and the yield on the benchmark 10-year U.S. Treasury note rose 4.3 basis points to 3.904 percent.
BY CHO YONG-JUN, YONHAP ([email protected])
