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Stocks close higher amid U.S. Fed meeting hopes

Published: 18 Mar. 2024, 18:15

KIM JI-YE
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,685.84 points on Monday, up 0.71 percent, or 19.0 points, from the previous trading session. [YONHAP]

Stocks closed slightly higher Monday ahead of a U.S. Fed meeting where investors believe signs of a possible rate cut down the road may emerge. The local currency lost ground against the U.S. dollar.

The Kospi gained 19.00 points, or 0.71 percent, to close at 2,685.84.

Trade volume was moderate at 401 million shares worth 9.35 trillion won ($7 billion), with losers outnumbering gainers 439 to 434.

Institutions were the sole buyers, net purchasing 224.1 billion won worth of shares, while foreigners and retail investors offloaded 80.3 billion won and 190.5 billion won, respectively.

The rise in the Kospi comes as the U.S. Federal Reserve is set to hold its rate-setting meeting on Tuesday and Wednesday (U.S. time).

"The Bank of Japan's monetary policy meeting and the U.S. Federal Open Market Committee meeting set to be held this week will set the direction of global financial markets," said Lee Kyung-min, an analyst at Daishin Securities.

Large caps closed mixed, with tech shares ending in positive terrain.

Samsung Electronics advanced 0.69 percent to close at 72,800 won, while SK hynix soared 1.92 percent to 164,300 won.

LG Energy Solution surged 2.26 percent to 407,500 won, with Samsung SDI spiking 4.47 percent to 444,000 won.

LG Chem gained 2.09 percent to 440,000 won and SK Innovation jumped 4.67 percent to 125,600 won.

For bio shares, Samsung Biologics jumped 4.00 percent to 859,000 won and Celltrion rose 0.94 percent to 182,500 won.

Financial shares were among the largest losers.

KB Financial lost 2.36 percent to 74,400 won, while Shinhan Financial retreated 1.31 percent to 48,950 won. Woori Financial slipped 2.1 percent to 14,910 won.

Hyundai Motor shed 0.41 percent to 242,500 won, while Kia Motors added 2.40 percent to 128,000 won.

The local currency closed at 1,333.70 won against the U.S. greenback, up 3.20 won from the previous session's close.

The Kosdaq gained 14.02 points, or 1.59 percent, to close at 894.48.

Bond prices, which move inversely to yields, fell. The yield on three-year government bonds rose 3.8 basis points to 3.347 percent, and the return on the benchmark 10-year government bonds climbed 1.8 basis points to 4.314 percent.

BY KIM JI-YE, YONHAP [[email protected]]