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Kospi climbs slightly as investors await Fed chair's testimony

Published: 09 Jul. 2024, 16:26

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,867.38 points on Tuesday, up 0.34 percent, or 9.62 points, from the previous trading session. [YONHAP]

Shares closed slightly higher Tuesday, with investors awaiting a congressional testimony by U.S. Federal Reserve Chairman Jerome Powell this week. The local currency gained value against the dollar.

The Kospi added 9.62 points, or 0.34 percent, to 2,867.38.

Trade volume was moderate at 443.2 million shares worth 10.8 trillion won ($7.83 billion), with gainers outnumbering losers 453 to 406. Foreigners bought a net 313 billion won, while individuals offloaded a net 292 billion won. Institutions offloaded a net 31 billion won.

Analysts said investors were awaiting signals of a rate cut during Powell's Congressional testimony slated for Tuesday in Washington, along with the release of major economic indicators, including the consumer price index for June on Thursday.

Tech shares also gathered steam after the tech-heavy Nasdaq closed at a record high on Wall Street overnight.

"Tech shares gained ground, led by semiconductors, after chip firms such as Nvidia and TSMC closed higher in the U.S. market," said Han Ji-young, an analyst at Kiwoom Securities.

In Seoul, Samsung Electronics closed 0.46 percent higher at 87,800 won, and SK hynix rose 2.14 percent to 238,500 won.

Tech shares closed higher. Naver added 0.12 percent to close at 170,700 won, and Kakao gained 0.12 percent to 42,450 won.

Samsung Biologics climbed 0.51 percent to 796,000 won, while Celltrion rose 2.07 percent to 187,200 won.

Battery makers finished bullish as well, with LG Energy Solution advancing 1.26 percent to 363,000 won and Samsung SDI increasing 0.26 percent to 382,500 won.

Carmakers, on the other hand, lost ground, with Hyundai Motor falling 3 percent to 274,000 won and Kia losing 1.37 percent to end at 122,500 won. Auto parts maker Hyundai Mobis shed 1.68 percent to close at 233,500 won.

The local currency was trading at 1,381.6 won against the greenback as of 3:30 p.m., down 1.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 0.8 basis points to 3.111 percent, and the return on the benchmark U.S. 10-year government bonds dropped 0.2 basis points to 4.28 percent.

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