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Shares rise after extended cease-fire in the Middle East

Published: 28 Nov. 2023, 17:25

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,521.76 points on Tuesday, up 1.05 percent, or 26.10 points, from the previous trading session. [NEWS1]

Shares ended more than 1 percent higher Tuesday as investors were buoyed by the latest news on an extended cease-fire in the Middle East. The local currency rose sharply in value against the dollar.

The Kospi jumped 26.10 points, or 1.05 percent, to close at 2,521.76.

Trading volume was slim at 435.8 million shares worth 8.59 trillion won ($6.64 billion), with gainers slightly outnumbering decliners 457 to 417.

Individual investors led the rally, purchasing a net 572.6 billion won worth of local shares, while foreigners and institutions dumped a combined 574.5 billion won.

Experts said the Kospi was affected by the news that Israel and Hamas agreed to extend their cease-fire for two more days, which lent support to the index, while key economic data, including the U.S. inflation index, will be released later this week. The Bank of Korea will also decide its key rate on Thursday.

"With the news on the extended truce between Israel and Hamas backing up the market, investors are waiting for upcoming economic reports including personal consumption expenditure (PCE) inflation data for October on Thursday," said Choi Yoo-jun, an analyst from Shinhan Securities.

Large-cap shares finished in positive territory across the board.

Among gainers, Samsung Electronics jumped 1.96 percent to 72,700 won and SK hynix gained 0.54 percent to 131,400 won.

Battery makers were among the winners, with LG Energy Solution edging up 0.12 percent to 435,000 won and Samsung SDI climbing 0.33 percent to 455,000 won.

Hyundai Motor rose 0.43 percent to 185,700 won and Kia went up 0.59 percent to 84,600 won.

Samsung Heavy Industries vaulted 4.08 percent to 8,160 won and Posco Holdings increased 2.14 percent to 478,000 won.

The local currency ended at 1,293.7 won against the dollar, down 10.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds dropped 4.2 points to 3.65 percent, and the return on the benchmark U.S. 10-year government bonds fell 8.0 points to reach 4.39 percent.

BY KIM JU-YEON, YONHAP [[email protected]]