Shares spike for 3rd day on chip rally as won strengthens
The Kospi climbed 3.68 percent to 6,579.04 as foreign and institutional investors piled into Samsung Electronics and SK hynix, while the won edged higher.
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An employee smiles in front of the electronic display board in the trading room of Hana Bank's headquarters in Jung District, central Seoul, on Aug. 12.YONHAP
Stocks ended sharply higher for the third straight session Wednesday as investors scooped up major chipmakers. The Korean won strengthened against the dollar.
The benchmark Kospi rose 233.51 points, or 3.68 percent, to close at 6,579.04, following 0.65 percent and 0.73 percent gains in the previous two sessions.
After opening 1.47 percent higher, the Kospi further added gains as foreigners and institutions scooped up major chip heavyweights.
At 11:57 a.m., the bourse operator activated a buy-side sidecar. Program trading for the Kospi-listed shares was suspended for five minutes.
Trade volume was moderate at 355 million shares worth 26.21 trillion won ($18.49 billion) trading hands, with losers outnumbering gainers 477 to 378.
Foreigners and institutions purchased a net 2.83 trillion won and 527.7 billion won worth of stocks, respectively, while retail investors alone off-loaded a net 3.19 trillion won in shares.
"Large order backlogs and new orders reaffirmed that investment in AI infrastructure and semiconductor demand remain solid, stimulating investor sentiment," Lee Kyung-min, an analyst at Daishin Securities, said.
Overnight, the Dow Jones Industrial Average fell 0.34 percent, while the S&P 500 declined 0.32 percent to 7,728.2. The Nasdaq composite shed 0.60 percent.`
In Seoul, large-cap stocks finished higher.
A person walks outside SK hynix headquarters in Icheon, Gyeonggi on July 29.YONHAP
Semiconductor heavyweight Samsung Electronics shot up 6.68 percent to 255,000 won per share and its rival SK hynix gained 5.54 percent to 1.5 million won.
SK Square, the parent of SK hynix, jumped 8.36 percent to 1.02 million won, and Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, increased 5.78 percent to 1.34 million won.
LG Energy Solution went up 1.13 percent to 358,500 won, and No. 1 automaker Hyundai Motor increased 1.61 percent to 409,500 won.
The Korean won strengthened 0.3 won against the dollar to 1,415.7 won at 3:30 p.m., compared to the previous trading session's close.
