Kospi ekes out gain as investors hedge bets on Trump policies

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Kospi ekes out gain as investors hedge bets on Trump policies

Published: 07 Nov. 2024, 17:28

KIM JU-YEON
kim.juyeon2@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,564.63 points on Thursday, up 0.04 percent, or 1.12 points, from the previous trading session. [YONHAP]

Shares finished slightly higher to end a two-session losing streak Thursday as investors scurried to gauge the potential impact of the incoming Donald Trump administration's policy on key sectors like semiconductors, EV batteries and shipbuilding. The won edged down against the dollar.

After opening slightly lower, the Kospi added 1.12 points, or 0.04 percent, to 2,564.63.

Trade volume was moderate at 447 million shares worth 10.6 trillion won ($7.6 billion), with losers beating winners 352 to 512.

Foreigners and institutions led the daily gain with a net purchase of 97.6 billion won and 113.4 billion won, respectively, while individuals sold a net 235.9 billion won.

Overnight, major U.S. indexes closed at record highs after Trump won the 2024 U.S. presidential election as investors expected lower taxes and deregulation.

The Dow Jones Industrial Average jumped 3.5 percent, and the Nasdaq Composite gained 2.95 percent.

In Seoul, large caps finished in mixed territory sector by sector.

Shipbuilders were the biggest winners as Trump mentioned Korea's participation in the U.S. shipbuilding industry, particularly in naval shipbuilding, exports, repairs and maintenance, during a phone conversation with Korean President Yoon Suk Yeol.

Hanwha Ocean shot up 21.76 percent to 33,850 won, and HD Korea Shipbuilding & Offshore Engineering jumped 6.03 percent to 197,000 won.

Defense firms were also strong, with Hanwha Aerospace gaining 4.52 percent to 405,000 won and LIG Nex1 increasing 3.66 percent to 197,000 won.

Chip maker Samsung Electronics rose 0.35 percent to 57,500 won, and rival SK hynix climbed 0.82 percent to 197,400 won.

But EV battery makers went south. LG Energy Solution fell 1.15 percent to 386,000 won, and Samsung SDI sank 3.52 percent to 288,000 won.

Bio tech firm Samsung Biologics skidded 3.02 percent to 995,000 won, and SK bioscience declined 3.79 percent to 50,800 won.

The local currency was trading at 1,396.6 won against the greenback at 3:30 p.m., up 0.4 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 3.9 basis points to 2.921 percent, and the return on the benchmark U.S. 10-year government bond gained 15 basis points to 4.432 percent.

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