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Seoul shares close higher on bargain hunting

June 25, 2024 - 17:09 By Yonhap
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Tuesday. (Yonhap)

Seoul shares closed higher Tuesday as investors hunted for bargains, with logistics and automobile shares leading the overall gains. The Korean won gained against the US dollar.

The benchmark Korea Composite Stock Price Index added 9.66 points, or 0.35 percent, to 2,774.39.

Trade volume was moderate at 703.6 million shares worth 11.4 trillion won ($8.2 billion), with gainers outnumbering losers 492 to 375.

Foreigners sold a net 143.5 billion won, while individuals offloaded a net 304 billion won. Institutions scooped up a net 166 billion won.

Overnight, the Nasdaq Composite plunged 1.09 percent, and the Dow Jones Industrial Average added 0.67 percent. Nvidia, which briefly shot up to become the most valuable firm last week, plunged 6.68 percent, with other technology firms losing ground as well.

Despite the US losses, Seoul shares closed higher as investors hunted for bargains, although analysts warned that a further correction on Wall Street may weigh down the local market as well.

"The profit taking in technology shares will give downward pressure on the South Korean stock market," Kim Seok-hwan, an analyst at Mirae Asset Securities, said.

In Seoul, logistics firms gained ground on the back of rising shipping costs, with HMM advancing 1.05 percent to 19,180 won and Hyundai Glovis adding 3.65 percent to 227,000 won. Korea Line also increased 8.15 percent to 2,455 won.

Carmakers were also among winners, with Hyundai Motor advancing 2.67 percent to 288,500 won and its sister Kia gaining 0.55 percent to 129,000 won. Auto parts maker Hyundai Mobis climbed 5.25 percent to 250,500 won.

Namyang Dairy Products jumped 3.95 percent to 552,000 won after the company announced a stock buyback program worth 20 billion won.

Top tech giant Samsung Electronics added 0.25 percent to 80,800 won,and No. 2 chipmaker SK hynix moved up 0.9 percent to 225,000 won.

Chemical shares, on the other hand, closed bearish, with LG Chem falling 1.4 percent to 351,000 won and SK Innovation losing 1.29 percent to 107,000 won.

The local currency ended at 1,387.5 won against the US dollar, up 1.5 won from the previous session's close. (Yonhap)