Seoul shares inch up amid inflation woes

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Seoul shares inch up amid inflation woes

Published: 20 Feb. 2023, 18:00

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,455.12 points on Monday, up 3.91 points, or 0.16 percent, from the previous trading day. [YONHAP]

Stocks ended slightly higher Monday as investors remain cautious about the United States' monetary policy path amid high inflation. The local currency rose against the dollar.

The benchmark Kospi added 3.91 points, or 0.16 percent, to 2,455.12. Trading volume was a bit slim at 382.21 million shares worth 7.43 trillion won ($5.74 billion), with gainers outpacing decliners 560 to 320.

The index opened markedly lower but rose to positive terrain after some fluctuations.

Institutions and individuals bought a net 172.04 billion won and 94.73 billion won worth of shares, respectively, while foreign investors sold a net 315.55 billion won.

The Korean central bank will hold a rate decision meeting Thursday, and the Fed will release the minutes of its latest policy meeting Wednesday.

"Bringing inflation under control is nearly impossible as the job market and consumption remain solid. The Fed will seek stronger rate hikes or maintain the high levels for longer," Daishin Securities analyst Lee Kyung-min said.

In Seoul, big-cap shares traded mixed.

Samsung Electronics rose 0.16 percent to 62,700 won, and chipmaker SK hynix grew 0.54 percent to 92,500 won.

But battery maker LG Energy Solution sank 3.19 percent to 516,000 won, Samsung SDI fell 1.56 percent to 692,000 won, and LG Chem decreased 3.19 percent to 667,000 won.

Carmakers ended lower, with automaker Hyundai Motor shedding 0.45 percent to 178,200 won and its affiliate Kia going down 0.13 percent to 76,300 won.

Bio shares gathered ground. Samsung Biologics climbed 0.75 percent to 805,000 won, and Celltrion jumped 1.49 percent to 157,000 won.

Naver went up 1.62 percent to 219,000 won, and Kakao, the operator of the popular mobile messenger KakaoTalk, increased 1.42 percent to 64,200 won.

Among gainers, Posco Holdings surged 3.59 percent to 346,000 won and KB Financial rose 1.4 percent to 50,700 won.

The local currency ended at 1,294.5 won against the dollar, down 5 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 2.2 basis points to 3.661 percent, and the return on the benchmark 10-year government bonds fell 4.0 basis points to 3.820 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]