Shares reach three-month high as optimism continues

Home > Business > Finance

Shares reach three-month high as optimism continues

Published: 20 Dec. 2023, 17:01

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,614.30 points on Wednesday, up 1.78 percent, or 45.75 points, from the previous trading session. [NEWS1]

Shares closed higher for the fifth-straight session Wednesday and at the highest in over three months amid expectations that the U.S. Federal Reserve will start its rate-cutting cycle next year.

The local currency rose in value against the dollar.

The benchmark Kospi gained 45.75 points, or 1.78 percent, to close at 2,614.30, the highest since September 15 when the comparable figure was 2,601.28.

The Kosdaq added 4.68 points, or 0.55 percent, to finish at 862.98.

Trade volume was moderate at 559.4 million shares worth 11.02 trillion won ($8.48 billion), and winners outpaced losers 682 to 204.

U.S. stock indexes gained ground overnight as last week's dovish policy pivot by the Fed continued to stoke upward market momentum.

Last week, the Fed kept its rate unchanged and hinted at possible cuts for 2024.

Roh Dong-kil, an analyst at Shinhan Securities, said, "there is the possibility of the Kospi advancing further" into next year, expecting that the index could reach as high as the 2,800 mark.

In Seoul, blue chips ended higher across the board as institutions and foreign investors scooped up shares.

Samsung Electronics rose 1.91 percent to 74,800 won and SK hynix also jumped 1.66 percent to 140,500 won.

LG Energy Solution climbed 1.53 percent to 432,500 won and Samsung SDI added 2.55 percent to end at 462,000 won.

Hyundai Motor soared 3.59 percent to 199,100 won and Kia jumped 6.38 percent to 95,000 won.

HMM, the country's No. 1 container shipper, surged 19.91 percent to 22,100 won following the announcement of its planned sale to Harim Group on Monday.

Samsung Biologics gained 2.13 percent to 719,000 won.

But Naver dropped 0.90 percent to 220,500 won and Kakao dropped 0.19 percent to 53,700 won.

The local currency closed at 1,298.90 won against the dollar, down 8.90 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 5.7 points to 3.237 percent, and the return on the benchmark U.S. 10-year government bonds dropped 0.7 points to 3.930 percent.

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