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Shares rise yet again on hopeful U.S. outlook

Published: 12 Dec. 2023, 16:46

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,535.27 points on Tuesday, up 0.39 percent, or 9.91 points, from the previous trading session. [NEWS1]

Shares closed higher for the third straight trading day on Tuesday amid the growing hope over a possible slowdown in U.S. inflation and the U.S. Federal Reserve's potential signal for rate cuts next year. The local currency rose in value against the dollar.

After choppy trading, the Kospi added 9.91 points, or 0.39 percent, to close at 2,535.27.

Trade volume was low at 365 million shares worth 7.49 trillion won ($5.7 billion), with losers outpacing winners 454 to 409.

Foreigners bought a net 74.6 billion won worth of shares, while individuals offloaded a net 684.6 billion won. Institutions scooped up a net 594.1 billion won.

Seoul shares gathered ground amid optimism surrounding U.S. inflation data, which is set to be released on Tuesday (U.S. time).

"Chipmakers gathered ground tracking gains from the U.S. market amid expectations over slower inflation," said Han Ji-young, an analyst from Kiwoom Securities. "The market advance, however, was limited as investors sat on the sidelines ahead of the Federal Open Market Committee [meeting]."

Tech shares gained ground, with Samsung Electronics moving up 0.68 percent to 73,500 won and SK hynix adding 1.63 percent to 131,000 won.

Financial firms also closed higher, with KB Financial rising 0.97 percent to 52,100 won and Shinhan Financial moving up 1.5 percent to 37,150 won.

Pharmaceutical firms closed bullish as well, with Samsung Biologics rising 0.14 percent to 704,000 won and Celltrion increasing 3.21 percent to 183,400 won.

Defense shares, on the other hand, lost ground amid concerns that Poland may scrap an arms deal with Korea. Hanwha Aerospace closed unchanged at 128,700 won, with Hyundai Rotem losing 4.28 percent to 26,850 won.

Battery manufacturer LG Energy Solution dropped 0.93 percent to 424,500 won.

The local currency closed at 1,314 won against the dollar, down 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 dropped 3.2 points to 3.446 percent, and the return on the benchmark U.S. 10-year government bonds rose 0.6 points to 4.234 percent.

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