Stocks rise while investors await U.S. monetary policy clues

Home > Business > Finance

Stocks rise while investors await U.S. monetary policy clues

Published: 11 Dec. 2023, 16:58

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show stock and foreign exchange markets open on Monday. [YONHAP]

Shares closed slightly higher on Monday as investors awaited clues over future U.S. monetary policy directions ahead of this week's U.S. Federal Reserve meeting.

The benchmark Kospi added 7.51 points, or 0.3 percent, to close at 2,525.36.

The Kosdaq rose 4.88 points, or 0.59 percent, to close at 835.25.

Trade volume was moderate at 424 million shares worth 7.97 trillion won ($6 billion), with winners outnumbering losers 479 to 375.

Foreigners bought a net 4.46 billion won worth of shares, while individuals offloaded a net 197.2 billion won. Institutions scooped up a net 161.8 billion won.

"The robust U.S. economy has elevated expectations for South Korea's key export goods, including chips and automobiles," said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Analysts, however, said the growth was limited as investors sat on the sidelines ahead of this week's Federal Open Market Committee meeting, with its key rate anticipated to remain steady between 5.25 and 5.50 percent.

Tech shares closed mixed, with Samsung Electronics moving up 0.55 percent to 73,000 won, while battery maker LG Energy Solution fell 0.46 percent to 428,500 won. Chipmaker SK hynix climbed 1.1 percent to 128,900 won.

Pharmaceutical firms mostly lost ground, with Samsung Biologics losing 0.85 percent to 703,000 won, while Celltrion climbed 5.96 percent to 177,700 won.

Food manufacturers closed higher, with CJ Cheiljedang rising 1.42 percent to 321,000 won and Orion edging up 0.09 percent to 111,400 won.

LIG Nex1, a defense company, jumped by 29.92 percent, which is the daily permissible limit, to 128,100 won on reports that it plans to acquire shares in a U.S. robot firm.

Carmakers also closed higher, with Hyundai Motor gaining 0.16 percent to 185,400 won and Kia adding 0.81 percent to 87,100 won.

The local currency closed at 1,316.50 against the dollar, up 9.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds stayed flat at 3.478 percent, and the return on the benchmark U.S. 10-year government bonds rose 7.4 points to 4.229 percent.

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