Shares close higher on investor hopes for inflation slowdown

Finance

Published: 11 Jul. 2024, 17:22 Updated: 11 Jul. 2024, 19:50

Shares close higher on investor hopes for inflation slowdown

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,891.35 points on Thursday, up 0.81 percent, or 23.36 points, from the previous trading session. [YONHAP]

Shares closed higher Thursday, extending their winning streak to a third day, as investors awaited U.S. inflation data. The local currency gained value against the dollar.

The benchmark Kospi gained 23.36 points, or 0.81 percent, to reach 2,891.35. The Kosdaq fell 6.13 points, or 7.1 percent, to 852.42.

Trade volume was moderate at 453 million shares worth 14.4 trillion won ($10.4 billion), with gainers outnumbering losers 438 to 414.

Foreigners bought a net 606 billion won, while individuals sold a net 351 billion won. Institutions offloaded a net 81 billion won.

Investors awaited the U.S. June consumer price index due Thursday (U.S. time), which will set the overall tone for the U.S. Federal Reserve's future rate policy.

The Bank of Korea froze its key rate for the 12th straight session at 3.5 percent but hinted that it may move toward easing policy amid moderating inflation. Korea's central bank remained cautious regarding a hasty pivot toward a monetary policy reversal.

“Investors' hope for additional slowdown in inflation and a rate cut remain valid,” said Kim Jee-hyun, an analyst from Kiwoom Securities.

In Seoul, Samsung Electronics edged down 0.23 percent to 87,600 won, and SK hynix climbed 0.84 percent to 231,000 won. LG Energy Solution jumped 3.59 percent to 375,000 won.

Financial firms also closed bullish, with KB Financial Group increasing 2.15 percent to 85,400 won and Shinhan Financial Group gaining 1.96 percent to 52,000 won.

Steelmakers finished higher as well, with Posco Holdings moving up 6.24 percent to 391,500 won and Korea Zinc rising 1.7 percent to 539,000 won.

Tech shares closed lower. Naver shed 0.79 percent to 176,100 won, and Kakao lost 0.94 percent to 42,350 won.

The local currency was trading at 1,378.8 won against the dollar as of 3:30 p.m., down 5.9 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 4.5 basis points to 3.165 percent, and the return on the benchmark U.S. 10-year government bonds fell 1.1 basis points to 4.286 percent.

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