Stocks finish slightly higher Wednesday as BOK delivers widely expected rate hike

Finance

Published: 12 Oct. 2022, 17:39

Stocks finish slightly higher Wednesday as BOK delivers widely expected rate hike

Electronic display boards at Hana Bank in central Seoul show stock and foreign exchange markets Wednesday morning. Kospi closed at 2,202.47 points on Wednesday, up 10.4 points, or 0.47 percent, from the previous trading day.[YONHAP]

Stocks finished slightly higher Wednesday as the Bank of Korea (BOK) delivered a widely expected big-step rate hike to quell high inflation. The local currency gained ground against the dollar.

The benchmark Kospi advanced 10.4 points, or 0.47 percent, to end at 2,202.47.

Trading volume was moderate at 642.5 million shares worth 7.32 trillion won ($5.13 billion), with losers outpacing gainers 450 to 410.

Institutional investors sold a net 105.2 billion won worth of shares and retail investors a net 146.7 billion won, while foreign investors bought a net 235.7 billion won worth of shares.

The market opened lower as investors awaited the BOK's direction about its monetary tightening.

But it pared earlier losses and moved into positive territory in the afternoon after the central bank raised its policy rate to 3 percent from 2.5 percent at a rate-setting meeting, in its fifth straight rate increase and the second big-step rise since the first-ever 50 basis-point hike in July.

In Seoul, most shares ended mixed, with chip stocks making advances.

Samsung Electronics and SK hynix, the country's two chipmakers, went up on news that the U.S. government allowed them to be temporarily exempted from extensive export controls, aimed at limiting China's access to advanced chipmaking technology and equipment.

Samsung Electronics added 0.72 percent to end at 55,800 won, and SK hynix gained 4.21 percent to 94,000 won.

Hyundai Motor ended flat at 168,000 won, while its affiliate Kia gained 1.19 percent to 68,200 won.

LG Chem dropped 1.01 percent to 591,000 won, and battery maker LG Energy Solutions lost 2.91 percent to 483,000 won.

The local currency finished at 1,424.90 won against the dollar, down 10.30 won from the previous session's close.

The Kosdaq gained 2.17 points, or 0.32 percent, to close at 671.67 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 23.3 basis points to 4.109 percent, and the yield on the 10-year government bond fell 18.7 basis points to 4.117 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]