Shares jump again over expected Fed cuts in 2024
Published: 15 Dec. 2023, 16:33
- KIM JU-YEON
- [email protected]
Shares closed higher Friday amid expectations the U.S. Federal Reserve will start its rate-cutting cycle in 2024. The local currency inched down in value against the dollar.
The benchmark Kospi gained 19.38 points, or 0.76 percent, to close at 2,563.56.
Trade volume was moderate at 458.2 million shares worth 12.7 trillion won ($9.8 billion), with winners outpacing losers 498 to 378.
Foreigners bought a net 849.5 billion won, while individuals dumped a net 1.14 trillion won. Institutions bought a net 298.6 billion won.
"Large-cap shares continued to remain strong on hopes the United States will start cutting its interest rates next year," Kim Seok-hwan, an analyst at Mirae Asset Securities, said.
Kim noted robotics shares were strong in particular on news the government will inject 3 trillion won in the industry by 2030.
Early this week, the Federal Reserve held its benchmark lending rate steady for a third consecutive time at the rate between 5.25 and 5.50 percent, and hinted that its hiking campaign — launched in March 2022 — may be near or at an end.
Techs and autos led the market advance.
Samsung Electronics rose 0.27 percent to 73,300 won, and SK hynix moved up 2.41 percent to 140,000 won.
Auto and IT shares basked in big gains.
Hyundai Motor shot up 4.33 percent to 192,800 won, and Kia climbed 2.41 percent to 89,300 won.
Naver gained 1.35 percent to 226,000 won, and Kakao added 1.1 percent to 54,900 won.
Posco Holdings soared 4.12 percent to 480,000 won, and LG Chem skyrocketed 6.25 percent to 493,000 won.
But LG Energy Solution lost 0.12 percent to 422,000 won, and Celltrion plunged 7.3 percent to 170,100 won.
The local currency closed at 1,296.5 won against the dollar, up 1.1 won from the previous session's close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 2.8 points to 3.284 percent, and the return on the benchmark U.S. 10-year government bonds fell 10.3 points to 3.920 percent.
BY KIM JU-YEON, YONHAP [[email protected]]
with the Korea JoongAng Daily
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