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Kospi leaps 1.12 percentage points on rate cut optimism

Published: 18 Dec. 2024, 17:07

CHO YONG-JUN
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,484.43 points on Dec. 18, up 1.12 percent, or 27.62 points, from the previous trading session. [NEWS1]

Shares ended more than 1 percent higher Wednesday as foreign investors picked up blue chip tech shares in a bargain following the Korean stock market's two-day fall. The Korean won was trading higher against the dollar.

The benchmark Kospi added 27.62 points, or 1.12 percent, to close at 2,484.43. The Kosdaq rose 3.10 points, or 0.45 percent, to close at 697.57.

Trade volume was moderate at 421.9 million shares worth 6.9 trillion won ($4.8 billion), with winners outnumbering losers 582 to 302.

Analysts said the Kospi gained ground as investors moved to buy blue chip tech shares following its two-day fall.

Foreigners and institutions purchased local shares worth 267.6 billion won and 134 billion won, respectively, while retail investors dumped 463.3 billion won.

Investors are also paying attention ahead of the U.S. Federal Reserve's rate decision, where the central bank is widely expected to make its third consecutive rate cut.

In Seoul, most big-cap shares gained ground.

Samsung Electronics rose 1.29 percent to 54,900 won while SK hynix lost 0.27 percent to 183,500 won.

Hyundai Motor soared 4.84 percent to 216,500 won and Kia shot up 6.37 percent to 101,800 won.

Financial and IT shares were also bullish.

KB Financial advanced 3.32 percent to 87,200 won, and Shinhan Financial climbed 2.77 percent to 50,000 won.

Naver increased 1.43 percent to 212,500 won and Kakao rose 1.28 percent to 43,400 won.

LG Electronics also jumped 5.41 percent to 91,500 won.

Battery shares were mixed, as LG Energy Solution dropped 0.26 percent to 381,500 won while Samsung SDI surged 4.45 percent to 258,000 won.

Posco Future M rose 1.31 percent to 154,600 won.

The local currency was trading at 1,435.5 won against the U.S. dollar at 3:30 p.m., down 3.4 won from the previous session.

Bond prices, which move inversely to yields, closed higher. Three-year government bond yields fell by 8.8 basis points to 2.534 percent, while the return on the benchmark 10-year U.S. government bonds fell by 0.1 basis points to 4.400 percent.

BY CHO YONG-JUN, YONHAP [[email protected]]