Finance
Seoul shares rebound from 2-year low on tech gains
Published : Oct 4, 2022 - 16:08
Updated : Oct 4, 2022 - 16:08
An electronic board showing the Korea Composite Stock Price Index (Kospi) at a dealing room of the Hana Bank headquarters in Seoul on Tuesday. (Yonhap)

South Korean stocks made a strong rebound Tuesday from more than a two-year low as investors picked up battered tech shares following solid gains on Wall Street.

The benchmark Korea Composite Stock Price Index (KOSPI) added 53.89 points, or 2.5 percent, to end at 2,209.38.

Trading volume was a bit slim at 412.58 million shares worth 7.37 trillion won ($5.16 billion), with gainers outpacing losers 815 to 90.

Foreigners bought a net 216.89 billion won worth of shares in Seoul, while retail and individual investors sold shares worth 206.66 billion won and 14.3 billion won, respectively.

The market opened higher and extended gains, as key US indices surged more than 2 percent each after US Treasury yields retreated from levels unseen in about a decade.

"The slowdown in the expansion of the US manufacturing sector also raises hope for the Federal Reserve to refrain from aggressive monetary tightening," Mirae Asset Securities analyst Park Gwang-nam said.

The US manufacturing purchasing managers index (PMI) fell slightly to 50.9 in September, which means that the manufacturing sector continued to grow but fell below economists' estimate.

On Friday, the Seoul index tumbled to 2,155.49, the lowest level since July 2020, on fears of a global economic recession amid aggressive monetary tightening in the US and other major economies to tame inflation.

The Seoul market was closed Monday for the National Foundation Day holiday.

Big-cap tech shares led the overall market gains.

Market bellwether Samsung Electronics jumped 3.95 percent from a 52-week low to 55,200 won, and chip giant SK hynix surged 3.73 percent to 86,200 won.

Some analysts said that potential production cuts by chipmakers would offset weakening market demand.

Battery maker LG Energy Solutions turned up 4.22 percent to 444,500 won, and Samsung SDI added 1.83 percent to 556,000 won.

Major chemical firm LG Chem advanced 3.54 percent to 555,000 won, and top steelmaker Posco soared 5.45 percent to 222,500 won.

Carmakers also gathered ground, with top automaker Hyundai Motor increasing 1.7 percent to 179,500 won and its affiliate Kia rising 1.25 percent to 72,800 won.

But internet giant Naver sank 8.79 percent to 176,500 won, as it seeks a 2.3 trillion-won deal to buy Poshmark Inc., a US second-hand fashion platform.

Kakao, the operator of the popular mobile messenger Kakao Talk, also fell 2.1 percent to 55,900 won.

The local currency ended at 1,426.50 won against the US dollar, up 3.7 won from the previous session's close. (Yonhap)

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