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Stocks close slightly higher Tuesday on battery advances

Published: 07 Mar. 2023, 18:21

A screen in Hana Bank's trading room in central Seoul shows stock and foreign exchange markets open on Tuesday. [NEWS1]

Stocks closed slightly higher Tuesday on battery advances, as investors wait for Federal Reserve Chair Jerome Powell's assessment of the U.S. economy this week. The local currency fell against the dollar.

The benchmark Kospi added 0.73 point, or 0.03 percent, to finish at 2,463.35. Trading volume was moderate at 441.9 million shares worth 10.6 trillion won ($8.2 billion), with gainers outnumbering decliners 462 to 415.

The Kospi opened lower before moving into positive territory in late morning trading but pared gains near the market close as institutional investors sold off shares.

Foreign investors bought a net 334.2 billion won, while retail and institutional investors sold a combined 350.7 billion won.

"Large cap shares in the secondary battery sector led advances in the Kospi, but it failed to gain further traction as investors maintained a cautious stance as they wait for Jerome Powell's testimony this week," analyst Lee Kyoung-min from Daishin Securities said.

Market volatility could increase if Powell suggests further strengthening of monetary tightening measures, analysts said.

In Seoul, battery shares were the lead gainers, while tech stocks lost ground.

Samsung Electronics declined 1.3 percent to 60,700 won, and chip maker SK hynix inched down 0.89 percent to 88,900 won.

Tech shares declined, with portal operator Naver falling 1.63 percent to 211,000 won and messenger app operator Kakao dipping 3.3 percent to 61,500 won.

In contrast, the secondary battery sector added gains.

Battery maker LG Energy Solutions added 3.47 percent to 566,000 won, chemical firm LG chem upped 1.93 percent to 740,000 won, and SK Innovation, which owns battery making affiliate SK On, jumped 5.24 percent to 176,800 won.

The local currency closed at 1,299.4 won against the dollar, up 2.5 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds shed 5.6 basis points to 3.726 percent, and the yield on the benchmark 10-year government bonds climbed 0.5 basis points to 3.963 percent.

BY SOHN DONG-JOO, YONHAP [[email protected]]