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Kospi closes up 0.19% on IT, defense share momentum

Published: 19 Jun. 2025, 17:23

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,977.74 points on June 19, up 5.55 points, or 0.19 percent, from the previous trading session. [YONHAP]

Shares rose for the fourth consecutive day Thursday as investors tried to digest recent developments in the Israel-Iran military conflict and the U.S. Federal Reserve's rate freeze. The won was trading sharply lower against the dollar.

The Kospi added 5.55 points, or 0.19 percent, to close at 2,977.74, continuing its winning streak since Monday.

Trade volume was moderate at 427.3 million shares worth 13.5 trillion won ($9.8 billion), with losers slightly outnumbering winners 441 to 431.

Retail investors purchased 351 billion won worth of local shares, offsetting a combined 383.9 billion won sell-off by foreigners and institutions.

Overnight, Wall Street closed mixed after the Fed decided to maintain its benchmark interest rate steady at the 4.25-4.5 percent range.

The Dow Jones Industrial Average went down 0.1 percent, and the S&P 500 fell 0.03 percent, while the tech-heavy Nasdaq composite went up 0.13 percent.

The Fed kept its projection for two rate cuts this year but struck a more cautious stance amid persisting uncertainties stemming from U.S. President Donald Trump's administration's tariff policies.

Fed Chair Jerome Powell said uncertainties have come down after peaking in April, but tariffs are expected to heighten inflationary pressure and weigh on the U.S. economy.

Investors' eyes were also on the escalating military conflict between Israel and Iran, with the Trump administration yet to decide whether to join Israel's attack on Tehran's nuclear facilities.

The Kospi began lower due to such global uncertainties but turned higher as retail investors moved to buy shares in IT, defense and other sectors that have recently gained traction.

Naver, the operator of the country's biggest search engine, jumped 3.49 percent to 252,000 won, continuing its upward momentum created by Seoul's massive investment plan in AI and global investment bank J.P. Morgan's favorable outlook on the company's future performance.

Kakao, the operator of the country's dominant mobile messenger, jumped 9.42 percent to 60,400 won, and Samsung SDS, a cloud provider, climbed 4.53 percent to 168,400 won, also on AI expectations.

Defense shares also rose big on the back of escalating tensions in the Middle East.

Industry leader Hanwha Aerospace gained 0.76 percent to 934,000 won, Poongsan shot up 17.02 percent to 126,500 won, Hyundai Rotem soared 7.89 percent to 212,000 won and LIG Nex1 advanced 5.33 percent to 593,000 won.

On the other hand, market heavyweight Samsung Electronics shed 1 percent to 59,200 won, and its chipmaking rival SK hynix lost 0.2 percent to 246,000 won.

Major shipbuilder Hanwha Ocean lost 3.46 percent to 89,200 won, and game maker Krafton slid 5.75 percent to 360,500 won.

Automakers were mixed, with Hyundai Motor up 0.49 percent to 207,000 won and its sister Kia down 0.71 percent to 98,200 won.

The local currency was quoted at 1,380.2 won against the greenback at 3:30 p.m., sharply down 10.8 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys gained 0.3 basis points to 2.48 percent, and the return on the benchmark five-year government bonds also rose 0.3 basis points to 2.64 percent.

Yonhap