South Korean Stocks Continue Upward Trend, Setting New Record High
SEOUL, Oct. 31 (Yonhap) — In a notable display of resilience, South Korean equities surged for the third consecutive day on Friday, achieving an unprecedented record high.
Investor enthusiasm has been largely propelled by optimistic projections regarding U.S. tech behemoth Nvidia’s supply of artificial intelligence (AI) chips to domestic firms. Concurrently, the South Korean won appreciated against the U.S. dollar.
Despite a tumultuous trading session, the benchmark Korea Composite Stock Price Index (KOSPI) experienced a gain of 20.61 points, equivalent to 0.5 percent, concluding at 4,107.5.
Trading activity reflected a moderate volume, with 386.2 million shares exchanged, aggregating to a value of 20.8 trillion won (approximately US$14.6 billion). Conversely, decliners outnumbered advancers, with 557 shares in retreat and 318 in ascent.
Foreign and individual investors recorded net selling figures of 598.8 billion won and 203.3 billion won, respectively, while institutional investors offloaded local shares amounting to a net 814.9 billion won.
The KOSPI initially opened on a downward trajectory, mirroring declines in prominent U.S. technology stocks. Microsoft and Meta experienced setbacks, raising apprehensions about the financial implications of investing in AI, while Nvidia’s shares slipped by 2 percent.
However, the Korean index underwent a notable rebound after Nvidia announced intentions to deploy as many as 260,000 graphics processing units (GPUs) in South Korea, collaborating with the government and major conglomerates such as Samsung Electronics and Hyundai Motor to establish extensive AI manufacturing facilities.
On the preceding day, Jensen Huang, CEO of Nvidia, conferred with Hyundai Motor Group Executive Chair Euisun Chung and Samsung Electronics Chairman Lee Jae-yong in Seoul to deliberate on potential business collaborations.
Lee Jae-won, an analyst at Shinhan Securities Co., remarked, “The anticipation surrounding the operational cooperation among the three giants is instilling buoyancy in pertinent sectors.”
The stocks of major firms displayed a varied performance.
- Samsung Electronics saw an uptick of 3.27 percent, ending at 107,500 won.
- Naver, the leading search engine platform, advanced by 4.74 percent, closing at 267,500 won.
- Hyundai Motor, the foremost player in the automotive sector, surged 9.43 percent to reach 290,000 won.
- Kia, its affiliated company, increased by 3.18 percent to 119,900 won.
- Conversely, SK hynix, the second-largest chipmaker, fell by 1.58 percent to 559,000 won, while LG Energy Solution dipped by 2.77 percent to 473,000 won.
As of 3:30 p.m., the local currency was traded at 1,424.7 won per U.S. dollar, reflecting an increase of 1.8 won from the prior day’s session.
In the bond market, prices, which are inversely correlated to yields, climbed higher. The yield on three-year government bonds decreased by 1.6 basis points, settling at 2.716 percent, while the benchmark five-year government bonds saw their yield slip by 0.2 basis points to 2.855 percent.
Source link: En.yna.co.kr.
