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Seoul shares up for 4th day on revived hopes for Fed's rate cut

June 14, 2024 - 16:58 By Yonhap
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Friday. (Yonhap)

South Korean shares closed up for the fourth consecutive session Friday amid hopes for a US rate cut that helped push US stock indexes to record highs. The local currency lost ground against the US dollar.

The benchmark Korea Composite Stock Price Index gained 3.53 points, or 0.13 percent, to close at 2,758.42.

Trade volume was heavy at 633.1 million shares worth 15.7 trillion won ($11.38 billion), with losers outnumbering gainers 481 to 399.

Foreign investors remained net buyers for a third consecutive session, scooping up a net 727.7 billion won worth of local shares, while institutions and retail investors offloaded 467 billion won and 210 billion won, respectively.

The KOSPI had opened a tad higher, tracking overnight gains on Wall Street.

Both the Nasdaq and S&P 500 climbed to new highs for a fourth consecutive session Thursday amid a rally by tech shares led by Apple Inc., which unveiled its free artificial intelligence earlier in the week but was also helped by the outcome of the Federal Open Market Committee meeting that indicated the start of US rate cuts within the year.

"The KOSPI neared a new annual high as the US stock market continues to reach new highs," said Lee Kyung-min, an analyst at Daishin Securities. "The latest rally comes as the outcome of the FOMC, as well as the May consumer price index and producer price index, helped ease investor sentiment."

In Seoul, large caps traded mixed.

Tech giant Samsung Electronics soared 1.27 percent to 79,600 won, but its local chipmaking rival SK hynix shed 0.45 percent to 221,000 won.

Top battery maker LG Energy Solution tumbled 3.86 percent to 349,000 won, while its local rival Samsung SDS gained 0.33 percent to 150,800 won.

Leading carmaker Hyundai Motor slipped 0.37 percent to 32,600 won, while its smaller affiliate Kia Motors advanced 0.82 percent to 122,700 won.

The local currency closed at 1,379.30 won against the US greenback, down 5.40 won from the previous session's close. (Yonhap)