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Kospi extends winning streak as world awaits impeachment vote

Published: 13 Dec. 2024, 16:58 Updated: 13 Dec. 2024, 17:02

A screen in Hana Bank's trading room in central Seoul on Thursday shows Kospi closing at 2,483.90, 1.78 points higher than the previous session. [YONHAP]

Shares extended their winning streak to the fourth consecutive session Friday, as investors anticipated the resolution of the nation's political turmoil ahead of another impeachment motion vote for President Yoon Suk Yeol. The won fell in value against the dollar.

The Kospi rose 0.50 percent, or 12.34 points, to close at 2,494.46.

Trade volume was moderate at 569 million shares worth 8.73 trillion won ($6.1 billion), with winners outnumbering losers 632 to 253.

Institutions led the Kospi's increase, net purchasing 139.5 billion won worth of shares, while retail investors and foreigners combined unloaded a net 256.4 billion won.

The opposition-controlled parliament is set to vote on a second motion on Saturday to impeach the president over his short-lived martial law order last week. The first impeachment motion was scrapped due to a lack of quorum after the ruling party boycotted the vote.

“Developments suggesting a potential easing of political uncertainties in the Korean stock market are continuously emerging,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Seo added, “Many market watchers believe that if political concerns are alleviated, the market could recover to levels seen before the martial law situation.”

Overnight, U.S. stocks fell due to inflation concerns. U.S. wholesale prices accelerated in November, coupled with higher-than-expected initial jobless claims.

The Nasdaq composite dropped 0.66 percent, and the S&P 500 fell 0.54 percent. The Dow Jones Industrial Average edged down 0.53 percent.

In Seoul, tech and automotive shares gained momentum, with Samsung Electronics edging up 0.36 percent to 56,100 won and Hyundai Motor adding 1.65 percent to close at 215,000 won.

Bio and shipbuilding shares also advanced. Samsung Biologics jumped 2.92 percent to 986,000 won, and HD Hyundai Heavy Industries gained 3.43 percent to end at 241,000 won.

In contrast, steel and financial shares retreated. Posco Holdings fell 1.28 percent to 271,000 won while KB Financial slid 2.30 percent to 85,000 won.

The local currency was trading at 1,432.90 won against the dollar at 3:30 p.m., up 1 won from the previous session.

Bond prices, which move inversely to yields, closed higher. Three-year government bond yields decreased 1 basis point to 2.541 percent, while the return on the benchmark 10-year U.S. government bonds increased by 5.2 basis points to 4.323 percent.

BY KAYA SELBY, YONHAP [[email protected]]