July 7, 2022

The foreign and institutional investors on Tuesday bought up market heavyweights following overnight U.S. gains, thus leading Seoul shares to closed higher.

The KOSPI whilst tracking the overnight Wall Street rally on the back of a so-called “Santa Claus Rally” to end the year opened mildly higher on Tuesday session.

The index on apparent profit-taking then traded slightly lower, however, in the afternoon session soon trimmed earlier losses.

An analyst at Mirae Asset Securities, Kim Seok-hwan commented that the stocks related to transfer tax of major shareholders were discharged into the market but institutional buying expanded in time for the dividend record date, adding that the overnight U.S. market rally also acted positively.

Market summary –

• The benchmark Korea Composite Stock Price Index (KOSPI) after a choppy session rose 20.69 points, or 0.69 percent, to 3,020.24 points.
• The trading volume on Tuesday’s session was moderate at about 593 million shares worth some 11.9 trillion won (US$10.1 billion), with gainers outnumbering losers 524 to 333.
• Individual investors sold stocks at net worth of 1.96 trillion won, while institutions purchased a net 1.52 trillion won and foreign investors 439.1 billion won.
• Most large-cap stocks across the board traded higher.
• South Korea’s market leader Samsung Electronics stocks advanced 0.12 percent to 80,300 won. While chipmaking company SK hynix stocks went up 1.19 percent to 127,500 won.
• The country’s top carmaker Hyundai Motor stocks gained 0.23 percent to 214,000 won, and portal operator Naver stocks gained percent 1.05 percent to 384,500 won.
• The country’s pharmaceutical giant Celltrion stocks advanced 5.88 percent to 216,000 won, and Samsung Group’s bio unit, Samsung Biologics stocks inched up 0.56 percent to 891,000 won.
• Hyundai’s sister company, Kia’s stocks traded down 0.35 percent to 84,500 won and SK Bioscience also lost 0.89 percent to 221,500 won.
• The local currency against the U.S. dollar closed at 1,188 won, down 1.2 won from Monday’s session.
• Bond prices closed lower on Tuesday trading.
• The yield on three-year Treasurys added 1 basis point to 1.786 percent.
• While the return on the benchmark five-year government bond in Tuesday rose 0.2 basis point to 1.991 percent.