Kospi ends up 0.33% as tech shares gain with Fed's rate cut

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Kospi ends up 0.33% as tech shares gain with Fed's rate cut

Published: 23 Sep. 2024, 17:36 Updated: 23 Sep. 2024, 19:19

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Monday. [YONHAP]

Shares closed higher Monday to extend their winning streak to a fifth day, backed by tech gains, as investors continued to digest the U.S. Federal Reserve's big cut last week.

The local currency rose against the dollar.

The benchmark Kospi rose 0.33 percent, or 8.64 points, to 2,602.01.

Trading volume was slim at 330.2 million shares worth 9.3 trillion won ($6.96 billion), with losers slightly surpassing winners 449 to 434.

Retail investors and institutions purchased local shares worth 372.4 billion won and 340.7 billion won, respectively, while foreigners dumped 720.7 billion won.

Analysts said investors were trying to assess the aftermath of the Fed's big cut last week.

The U.S. central bank has kicked off its monetary-easing cycle by cutting its overnight lending rate by half a percentage point to a range of 4.75 percent to 5 percent and also pledged further rate cuts.

Investors are also awaiting U.S. chipmaker Micron's earnings release and the launch of the Korea Exchange's value-up index due later this week.

Samsung Electronics decreased 0.63 percent to 62,600 won, while SK hynix surged 3.12 percent to 162,000 won.

Samsung Biologics jumped 2.55 percent to 1.09 million won, and biopharma Celltrion advanced 1.74 percent to 205,000 won.

Naver also shot up 4.25 percent to 166,700 won.

Battery makers also gained ground, with LG Energy Solution up 0.89 percent to 397,000 won and Samsung SDI up 0.66 percent to 379,000 won. Posco Future M also soared 2.56 percent to 240,000 won.

But automakers lost ground, with Hyundai Motor down 0.6 percent to 249,000 won and Kia down 2.27 percent to 103,200 won.

The local currency was trading at 1,335.90 won against the greenback at 3:30 p.m., up 6.8 won from the previous session's close.

The Kosdaq gained 6.79 points, or 0.91 percent, to close at 755.12.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds gained 3.4 basis points to 2.864 percent, and the return on the benchmark U.S. 10-year government bond rose 2.9 basis points to 3.741 percent.

BY CHO YONG-JUN, YONHAP [cho.yongjun1@joongang.co.kr]