Seoul’s stock market wrapped up Monday’s trading session with a positive tone, as investors found reassurance in the U.S. inflation data, which aligned closely with market expectations. This alignment fueled hopes among market participants that the Federal Reserve might take action to implement rate cuts, possibly as early as June. However, the performance of the Korean won against the U.S. dollar showed a contrasting narrative, with the local currency experiencing a depreciation.
The benchmark Korea Composite Stock Price Index (KOSPI) inched up by 1.23 points, representing a modest gain of 0.04 percent, to settle at 2,747.86. Market activity remained relatively subdued, with a total of 391.77 million shares changing hands throughout the day, valued at approximately 9.9 trillion won (equivalent to approximately US$7.3 billion). Despite the tepid trading volume, the number of advancing stocks outnumbered decliners, with 573 stocks posting gains against 295 stocks registering losses.
Institutional investors and foreign entities played a significant role in supporting the market, collectively injecting funds by purchasing stocks worth 294 billion won. This influx of capital effectively offset the net selling activity conducted by individual investors, who divested stocks valued at 317.11 billion won.
The release of the U.S. personal consumption expenditures index for February on Friday was closely monitored by market participants. The index largely met market expectations, setting the stage for anticipation surrounding the Federal Reserve’s upcoming monetary policy decisions. The prevailing sentiment suggests widespread anticipation of a potential rate cut by the Federal Reserve, with June emerging as a likely timeframe for such action.
Within the Seoul market, notable gains were observed in shares of airlines and domestic-focused companies. Hanjin KAL Corp., the parent company of Korean Air Co., demonstrated robust performance with a notable surge of 3.4 percent, closing at 61,500 won. Similarly, Korean Air experienced a 1.6 percent increase, settling at 22,050 won, while budget carrier Jeju Air Co. recorded substantial gains, climbing by 4.7 percent to reach 2,870 won. Another standout performer was cosmetics giant Amorepacific Corp., which witnessed a notable surge of 6.3 percent, closing at 129,100 won. Additionally, state utility Korea Electric Power Corp. displayed resilience by advancing by 0.5 percent to reach 22,100 won.
Conversely, several key players experienced declines, contributing to the mixed performance of the market. Market heavyweight Samsung Electronics Co. dipped by 0.5 percent to settle at 82,000 won, while leading automaker Hyundai Motor Co. retreated by 2.4 percent, closing at 227,500 won. Similarly, top steelmaker POSCO Holdings and shipbuilding conglomerate HD Hyundai witnessed decreases of 1 percent each, settling at 418,000 won and 70,500 won, respectively.
The local currency, the Korean won, concluded the trading session at 1,349.40 won against the U.S. dollar, marking a decline of 2.2 won compared to the previous session’s closing rate. This movement underscored the complex dynamics at play within the financial markets, reflecting the interplay between domestic and global economic factors.