Seoul Stock Market Rises Despite US Rate Hike Concerns

In the face of anxieties about a possible hike in U.S. interest rates aimed at controlling persistent high inflation, Seoul's stock market finished with gains on Monday. The South Korean Won appreciated in value when compared to the American dollar.

The Korea Composite Stock Price Index (KOSPI) experienced a 0.86 percent increase, resulting in a gain of 21.35 points, concluding the trading day at 2,491.20.

Trading activity was considerable with 319.84 million shares changing hands. The total value of shares traded amounted to approximately 6.5 trillion won ($5.03 billion). The number of stocks that increased in price outpaced those that declined, with 648 gainers to 229 losers.

The KOSPI kicked off the day nearly unchanged as traders were wary of the potential effect of another rate hike from the United States.

Expectations had been set for the U.S. Federal Reserve to be approaching the end of its interest rate increases. However, San Francisco Federal Reserve President Mary Daly indicated that it might be premature to halt the monetary tightening process.

At the close of last week, the stock markets in the U.S. reflected careful optimism. The Dow Jones Industrial Average edged up slightly by 0.01 percent to land at 34,947.28, while the NASDAQ, known for its heavy technology stock presence, went up by 0.08 percent to 14,125.48.

This week carries significant implications as investors are on the lookout for Nvidia Corp.'s earnings release and will be attentive to inflation data from Japan and Canada. These events will provide insights for investors reorganizing their portfolios, as per the analysis from industry experts.

"Investors are increasingly placing their bets on the Fed potentially reducing rates in the first half of the next year and also anticipate strong earnings from Nvidia following the successful financial results posted by its large tech peers in the recent months," stated Park Hee-cheol, an analyst at Mirae Asset Securities Co.

"These expectations propelled the KOSPI to close in the green," he added.

In terms of stock transactions, institutions and foreign investors combined purchased 534 billion won worth of shares, which balanced out the 539 billion won in stocks sold by individual investors.

Tech and energy sectors saw the most significant gains for the day.

Market leader Samsung Electronics saw a modest increase of 0.3 percent with shares priced at 72,700 won. SK hynix, a major semiconductor manufacturer, rose by 1.2 percent to 131,400 won. SK Telecom, the top wireless service provider, had a slight gain of 0.2 percent to 52,000 won. LG Energy Solution, known for its automotive batteries, saw its shares soar by 2.8 percent to 444,000 won.

On the flip side, Hyundai Motor's shares dipped by 0.4 percent to 183,600 won. Korean Air faced a decrease of 0.9 percent closing at 22,350 won, and Hyundai Steel saw shares drop by 1.3 percent to 34,700 won.

On a brighter note, the Korean won strengthened, ending the session at 1,291.6 won against the U.S. dollar, advancing by 5.3 won from the close of the previous trading session.

Seoul, Stocks, Economy