The Seoul stock market concluded Thursday’s trading session higher, driven by significant institutional buying that successfully counterbalanced substantial retail selling pressure. This market movement occurred amidst a reevaluation of the artificial intelligence (AI) sector’s demand outlook. Concurrently, the Korean won experienced a decline against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) initially surged by 3.3 percent at open before moderating its gains. It ultimately closed up 45.12 points, or 0.62 percent, reaching 7,291.91, signaling a positive day for South Korean equities.
Market activity saw a moderate trade volume of 574.75 million shares, valued at 37.46 trillion won ($24.9 billion USD). Despite the overall index gain, decliners significantly outnumbered gainers, with 651 stocks falling compared to 235 advancing.
Institutional investors demonstrated strong confidence, net buying 1.29 trillion won, alongside foreign investors who net purchased 137.54 billion won. In contrast, individual retail investors were net sellers, offloading 1.33 trillion won from the market.
Market analysts highlighted persistent investor apprehension regarding escalating geopolitical tensions in the Middle East. Furthermore, uncertainties surrounding the long-term demand outlook for artificial intelligence technology continued to influence investor sentiment.
Kang Jin-hyuk, an analyst at Shinhan Securities Co., commented on the market’s headwinds, stating, “Renewed tensions between the United States and Iran, coupled with selling by retail investors amid heightened market volatility, exerted downward pressure on the benchmark KOSPI index.”
Looking to overseas markets, US stocks concluded overnight trading with a mixed performance. The Dow Jones Industrial Average registered a decline of 0.81 percent, while the technology-heavy Nasdaq Composite Index saw a robust gain of 4.19 percent.
This significant rebound in global technology stocks provided crucial support to the overall market sentiment.
Among the top performers, market bellwether Samsung Electronics saw a modest gain of 0.18 percent, closing at 278,000 won. Semiconductor giant SK hynix experienced a stronger surge, climbing 5.3 percent to 2,186,000 won, highlighting strength in the chip sector.
Further driving market gains, Korea Aerospace Industries (KAI), South Korea’s exclusive aircraft manufacturer, recorded a significant jump of 5.6 percent, reaching 150,000 won. Energy firm S-Oil also posted a gain of 1.44 percent, closing at 133,500 won.
However, not all stocks participated in the rally. Among the notable decliners, leading automaker Hyundai Motor experienced a fall of 3.68 percent to 445,500 won. Flag carrier Korean Air also saw a pullback, losing 5.15 percent to close at 26,700 won.
