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Shares rise as martial law probe picks up speed

Published: 11 Dec. 2024, 19:33

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,442,51 points on Monday, up 1.02 percent, or 24.67 points, from the previous trading session. [YONHAP]

Shares closed more than 1 percent higher Wednesday, extending their winning streak to a second session as a widespread investigation into President Yoon Suk Yeol's brief martial law declaration by various law enforcement agencies picked up speed. The won lost ground against the dollar.

The benchmark Kospi added 24.67 points, or 1.02 percent, to finish at 2,442.51. The Kosdaq gained 14.33 points, or 2.17 percent, to close at 675.92

Trade volume was moderate at 607 million shares worth 7.53 trillion won ($5.26 billion), with winners outpacing losers 808 to 102.

Institutions bought a net 175.5 billion won worth of shares while foreign and retail investors sold a combined net 262.1 billion won worth of shares.

Yoon faces a criminal investigation in connection with insurrection and other charges related to his short-lived martial law order last week.

The heads of the National Police Agency and the Seoul Metropolitan Police Agency were placed under emergency arrest early Wednesday in connection with their alleged involvement. Police investigators also attempted to raid the presidential office, to no avail, as of late Wednesday.

Overnight, the U.S. stock market declined amid concerns in the semiconductor industry, following the earnings report from TSMC, and caution ahead of the release of inflation data.

The tech-heavy Nasdaq composite dropped 0.25 percent, and the S&P 500 fell 0.3 percent. The Dow Jones Industrial Average edged down 0.35 percent.

Shipbuilders and financial shares advanced, with HD Hyundai Heavy Industries jumping 6.67 percent to 232,000 won and Kookmin Financial Group rising 2.52 percent to 85,400 won.

Defense equipment and internet-related shares also gained momentum. Hanwha Aerospace added 2.41 percent to close at 298,000 won, and Naver rose 4.31 percent to 218,000 won.

SK hynix added 0.82 percent to close at 171,800 won, while Samsung Electronics remained unchanged at 54,000 won.

The won was trading at 1,432.20 against the greenback at 3:30 p.m., up 5.3 won from the previous session.

Bond prices, which move inversely to yields, closed lower. Three-year government bond yields increased by 0.9 basis points to 2.535 percent, while the return on the benchmark 10-year U.S. government bonds rose by 2.7 basis points to 4.235 percent.

BY KAYA SELBY, YONHAP [[email protected]]