SEOUL, South Korean stocks rose more than 1 percent to a two-month high Tuesday as investors were buoyed by the latest news on an extended cease-fire in the Middle East. The local currency rose sharply against the U.S. greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 26.10 points, or 1.05 percent, to close at 2,521.76, marking the highest closing price since Sept. 20 when the index finished at 2,559.74.
Trading volume was slim at 435.8 million shares worth 8.59 trillion won (US$6.64 billion), with gainers slightly outnumbering decliners 457 to 417.
Individual investors led the rally, purchasing a net 572.6 billion won worth of local shares, while foreigners and institutions dumped a combined 574.5 billion won.
Experts said the KOSPI was affected by the news that Israel and Hamas agreed to extend their cease-fire for two more days, which lent support to the index, while key economic data, including the U.S. inflation index, will be released later this week. The Bank of Korea will also decide its key rate Thursday.
“With the news on the extended truce between Israel and Hamas backing up the market, investors are waiting for upcoming economic reports including personal consumption expenditure (PCE) inflation data for October on Thursday,” Choi Yoo-jun, an analyst from Shinhan Securities.
Screens show the Korea Composite Stock Price Index and dollar-won exchange rate in a trading room at a Hana Bank branch in central Seoul on Nov. 28, 2023.
Large-cap shares finished in positive territory across the board.
Top-cap Samsung Electronics jumped 1.96 percent to 72,700 won and its chipmaking rival SK hynix gained 0.54 percent to 131,400 won.
Battery makers were among the winners, with industry leader LG Energy Solution edging up 0.12 percent to 435,000 won and Samsung SDI climbing 0.33 percent to 455,000 won.
No. 1 carmaker Hyundai Motor rose 0.43 percent to 185,700 won and its sister Kia went up 0.59 percent to 84,600 won.
Leading shipbuilder Samsung Heavy Industries vaulted 4.08 percent to 8,160 won and steel giant POSCO Holdings increased 2.14 percent to 478,000 won.
The local currency ended at 1,293.7 won against the greenback, up 10.1 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 4.1 basis points to 3.648 percent, and the return on the benchmark five-year government bonds fell 5.2 basis points to 3.670 percent.
Source: Yonhap News Agency