Kospi inches upward 0.06% on BOK's surprise rate cut

Home > Business > Finance

Kospi inches upward 0.06% on BOK's surprise rate cut

Published: 28 Nov. 2024, 16:29 Updated: 28 Nov. 2024, 17:31

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,504.67 points on Thursday, up 0.06 percent, or 1.61 points, from the previous trading session. [YONHAP]

Shares ended slightly higher Thursday, despite big-cap tech losses, as investors assessed the Bank of Korea (BOK)'s surprise back-to-back policy rate cut to spur growth. The won rose in value against the dollar.

The Kospi added 1.61 points, or 0.06 percent, to close at 2,504.67, ending a two-day losing streak.

Trade volume was a bit slim at 333.44 million shares worth 7.37 trillion won ($5.28 billion), with winners outnumbering losers 514 to 361.

Foreigners sold a net 492.42 billion won worth of shares, while institutions and retail investors bought a net 339.09 billion won and 78.36 billion won, respectively.

The index opened lower, tracking overnight losses on Wall Street, and moved within a tight range throughout the session.

The BOK unexpectedly slashed its policy rate for a second time in a row to help prop up the economy amid a slowdown in export growth and uncertainties regarding the incoming Donald Trump administration's expected protectionist measures.

Big-cap shares closed mixed, with shares of chipmakers coming under downward pressure.

Samsung Electronics fell 1.42 percent to 55,500 won, while chipmaker SK hynix plunged 4.28 percent to close at 161,100 won.

But electric vehicle battery maker LG Energy Solution rose 0.5 percent to 402,500 won, and chemicals producer LG Chem went up 1.33 percent to 305,000 won.

Bio shares gathered ground on cheaper borrowing costs. Pharmaceutical firm Samsung Biologics surged 4.93 percent to 1,000,000 won, and Celltrion soared 4.84 percent to 186,400 won.

Carmakers ended mixed, with Hyundai Motor slipping 0.9 percent to 219,000 won, while its affiliate Kia advanced 0.74 percent to 95,000 won.

Steelmaker Posco Holdings shed 0.67 percent to 295,500 won, but internet platform operator Naver added 0.74 percent to 204,500 won.

The local currency was trading at 1,395.6 won against the greenback at 3:30 p.m., down 1.4 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 10.7 basis points to 2.635 percent, and the return on the benchmark 10-year U.S. government bonds dropped 3 basis points to 4.267 percent.

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