Kospi snaps losing streak to rise 1.32% on Monday

Finance

Published: 27 May. 2024, 16:20

Kospi snaps losing streak to rise 1.32% on Monday

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,722.99 points on Monday, up 1.32 percent, or 35.39 points, from the previous trading session. [NEWS1]

Shares jumped over 1 percent Monday to snap their four-day losing streak on bargain hunting amid dashed hopes for an early rate cut by the U.S. Federal Reserve. The local currency rose in value against the dollar.

The Kospi moved up 35.59 points, or 1.32 percent, to close at 2,722.99.

Trade volume was moderate at 546 million shares worth 15.6 trillion won ($11.4 billion), with losers slightly outpacing gainers 442 to 422.

Foreigners sold a net 140 billion won worth of local shares, while institutions bought a net 325 billion won. Individuals shed a net 175 billion won.

Seoul shares had lost ground for four straight sessions after hawkish comments in the latest minutes from the U.S. Federal Open Market Committee's (FOMC) meeting.

Analysts said investors are taking a wait-and-see approach as they search for clues for the future path of the U.S. key rates.

"The impact of the FOMC minutes released on Wednesday still lingers," said Kim Dae-joon, a researcher at Korea Investment & Securities, noting that the aftermath may continue to affect the market this week.

Tech shares closed higher, with Samsung Electronics moving up 1.71 percent to 77,200 won and SK hynix gaining 1.46 percent to 201,500 won.

Machinery firms led the overall gain, with Hanmi Semiconductor, which supplies equipment to global chip giants including SK hynix and Micron Technology, advancing 3.05 percent to 152,200 won.

Doosan Enerbility also shot up 16.65 percent to 21,300 won on reports that it is participating in a U.S. small modular reactor project, but the company has not confirmed the specific scope of the deal or its involvement yet.

Battery makers were also among the winners, with LG Energy Solution rising 2.39 percent to 364,500 won and Samsung SDI climbing 3.49 percent to 415,000 won.

The local currency ended at 1,363.80 won against the greenback, down 5.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 1.2 basis points to 3.498 percent, and the return on the benchmark U.S. 10-year government bonds dropped 1.0 basis points to 4.466 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]