Kospi Jumps 2.42% to Close Near 7,000; Kosdaq Extends Rally

Sentiment Improves as US Tech Stocks Rally

Foreign Investors Snap Up 3.04 Trillion Won of Kospi Shares

South Korea’s Kospi moved back toward the 7,000 level as a rally in US technology stocks helped revive investor sentiment. The Kosdaq also rose for a fifth straight trading day.

On Aug. 14, the Kospi closed at 6,977.94, up 164.6 points, or 2.42%, from the previous session. The index briefly climbed above 7,000 intraday for the first time in 15 trading days, but gave up some of its gains as investors locked in profits.

Market sentiment was buoyed after inflation pressures eased in the US and international oil prices turned lower, lifting technology shares broadly.

That also reduced concerns about additional rate hikes. CME FedWatch showed the federal funds futures market increased the odds that the Federal Reserve will leave its benchmark interest rate unchanged in September to 67.6% after the producer price index report was released on Aug. 14, from 59.4% a day earlier.

On the Kospi, foreign investors were net buyers of 3.038 trillion won. Institutional and retail investors were net sellers of 1.027 trillion won and 1.985 trillion won, respectively.

Most of the Kospi’s largest stocks by market capitalization advanced. Samsung Electronics and SK Hynix rose 2.43% and 3.26%, respectively, while Samsung Electronics preferred shares, SK Square and Samsung Electro-Mechanics gained 4.15%, 3.31% and 3.66%.

Hyundai Motor Group shares also rebounded as bargain buying came in and interest in physical artificial intelligence businesses resurfaced. Hyundai Motor climbed 8.24%, Kia added 3.13%, Hyundai Mobis rose 7.05%, Hyundai AutoEver gained 9.02%, Hyundai Motor 2nd Preferred B advanced 5.71% and Hyundai Motor preferred shares rose 5.24%.

The Kosdaq extended its winning streak to five trading days. The index closed at 864.65 on Aug. 14, up 0.38% from the previous session. On the Kosdaq, retail investors were net buyers of 315 billion won, while institutions and foreign investors were net sellers of 253 billion won and 66 billion won, respectively.

Curiox Biosystems surged by the daily limit on the Kosdaq after securing an order from a global pharmaceutical company. Robot-related stocks including Clobot, Hyundai Movex, Robotis and Yuil Robotics also traded higher.

The won strengthened against the dollar. As of 3:30 p.m. in Seoul, the won was quoted at 1,418.3 per dollar, down 1.1 won from the previous session.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com