South Korean stocks ended trading on Tuesday with minimal movement, registering a slight increase as investors adopted a cautious stance. Market participants are closely watching for upcoming key economic data releases from the United States this week, which are expected to provide further insight into the Federal Reserve’s future monetary policy decisions.
The Korea Composite Stock Price Index (KOSPI) edged up by 3.65 points, a 0.07 percent gain, to close at 5,301.69.
Trading activity was at a moderate level, with 705.3 million shares changing hands, amounting to a total value of 22.9 trillion won ($15.7 billion). The number of advancing stocks surpassed that of declining ones, with 687 gainers compared to 209 losers.
Foreign investors and institutions were net buyers of local shares, purchasing 143.7 billion won and 563.5 billion won worth, respectively. In contrast, retail investors were net sellers, offloading 873.4 billion won worth of shares.
Overnight, in the U.S. market, the Nasdaq Composite Index rose by 0.9 percent, while the S&P 500 Index gained 0.47 percent. This increase was fueled by investors buying into technology stocks, alleviated concerns regarding AI valuations, and anticipation of the week’s U.S. economic reports. The Dow Jones Industrial Average saw a slight increase of 0.04 percent.
“The KOSPI is currently in a holding pattern, awaiting the start of the extended Lunar New Year holiday this weekend and the release of crucial U.S. data on consumption, employment, and consumer prices,” noted Lee Kyoung-min, an analyst at Daishin Securities.
“Due to increased investor caution and a shift towards a wait-and-see approach, the KOSPI’s daily trading volume, which had previously surged to around 30 trillion won, has now decreased to the upper 10 trillion-won range,” Lee added.
Despite an initial positive start following gains in the U.S., semiconductor giant Samsung Electronics experienced a decline of 0.36 percent, closing at 165,800 won. Similarly, its competitor SK hynix fell by 1.24 percent to 876,000 won.
Leading battery manufacturer LG Energy Solution decreased by 1.01 percent to 390,500 won, while defense company Hanwha Aerospace saw a significant drop of 3.94 percent, reaching 1.15 million won.
Shipbuilding companies also faced losses, with HD Hyundai Heavy Industries falling by 1.11 percent to 534,000 won and Hanwha Ocean declining by 1.73 percent to 130,900 won.
Power plant developer Doosan Enerbility decreased by 1.36 percent to 94,100 won, and Korea Electric Power Corporation (KEPCO) slid by 2.88 percent to 60,800 won.
However, automotive leader Hyundai Motor saw an increase of 0.52 percent, closing at 480,500 won, and its affiliate Kia also rose by 0.59 percent to 154,700 won.
Financial stocks performed particularly well, with KB Financial Group surging by 2.71 percent to 155,500 won and Shinhan Financial Group soaring by 4.82 percent to 97,900 won.
Naver, a major internet portal operator, gained 1.6 percent, reaching 254,000 won.
The textile, logistics, food, and other consumer goods sectors also experienced gains.
