Seoul Stocks Soar as Middle East Truce Lifts Investor Sentiment

On Tuesday, South Korean stocks saw a significant uptick, rising over 1 percent, buoyed by the positive news of an extended truce in the Middle East conflict. The announcement of the ceasefire's extension injected optimism into the market, leading to a substantial gain in shares. The South Korean won also experienced a sharp appreciation against the US dollar.

Positive Closure for Kospi

The benchmark Kospi index reflected the upbeat investor sentiment, advancing 26.1 points or an increase of 1.05 percent to close the trading day at 2,521.76. Despite the rise, market activity remained relatively muted with trading volume clocking in at 435.8 million shares, which were valued at approximately 8.59 trillion won or $6.64 billion. The market saw a close contention between gaining and losing shares with 457 stocks ending higher and 417 recording a decline.

Individual Investors Take the Lead

Individual investors were at the forefront of the buying spree, snapping up a net 572.6 billion won in local stocks. On the other hand, foreign investors and institutions offloaded stocks worth 574.5 billion won, collectively. Market observers noted the Kospi's movements were swayed by the ceasefire extension between Israel and Hamas, providing a backstop to the market. Investors' focus is also split towards imminent economic indicators such as the US inflation index due later in the week and the Bank of Korea's key rate decision on Thursday.

Rally Among Top-Tier Shares

Heavyweight stocks ended the day on a high note. Samsung Electronics saw a significant jump of 1.96 percent to close at 72,700 won. The company's semiconductor competitor, SK hynix, also enjoyed gains, finishing 0.54 percent higher at 131,400 won. Battery manufacturing leaders also featured amongst the winners as LG Energy Solution ticked up by 0.12 percent to reach 435,000 won while Samsung SDI saw a 0.33 percent rise to 455,000 won.

Automotive giants Hyundai Motor and Kia registered gains of 0.43 percent to 185,700 won and 0.59 percent to 84,600 won, respectively. In the shipbuilding segment, Samsung Heavy Industries soared by an impressive 4.08 percent to close at 8,160 won, and the steel behemoth Posco Holdings climbed 2.14 percent to end at 478,000 won.

On the currency front, the local won concluded the trading session at a sturdy 1,293.7 won against the US dollar, fortifying its position by 10.1 won from the prior session's close.

Seoul, Stocks, Truce