Published 13:20 IST, March 8th 2024
South Korean stocks surge to 21-month high on chipmaker rally
For the week, the KOSPI index recorded a significant uptick of 1.44 per cent, marking its most substantial weekly gain in five weeks.
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South Korean shares surge: South Korean shares surged over 1 per cent on Friday to hit highest level in more than 21 months. The bullish momentum was largely attributed to a robust performance from heavyweight chipmakers, echoing the upward trend seen in global peers.
The benchmark KOSPI index concluded the trading session with a notable gain of 32.73 points, or 1.24 per cent, closing at 2,680.35. This marks its loftiest level since May 31, 2022, underlining the market's bullish sentiment.
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For the week, the KOSPI index recorded a significant uptick of 1.44 per cent, marking its most substantial weekly gain in five weeks.
Leading the charge were prominent chipmakers, with Samsung Electronics and SK Hynix notably making substantial gains of 1.52 per cent and 4.24 per cent, respectively. This surge followed a remarkable overnight jump of over 3 per cent in the Philadelphia Semiconductor Index, affirming the buoyancy in the semiconductor sector.
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Federal Reserve Chair Jerome Powell's remarks on Thursday regarding the US central bank's stance on falling inflation contributed positively to market sentiment. Powell's indication that the Fed was nearing the confidence threshold necessary to initiate interest rate cuts bolstered tech stocks, according to Na Jeong-hwan, an analyst at NH Investment Securities.
The positive sentiment extended across various sectors, with battery makers, automakers, and biopharmaceutical manufacturers also witnessing firmness in their stock prices.
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Among the total 934 traded issues, 523 shares advanced, while 352 declined, reflecting the overall bullish sentiment prevailing in the market.
Foreign investors demonstrated strong interest, emerging as net buyers of shares worth 178.6 billion won ($135.37 million) on the main board during Friday's trading session.
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Meanwhile, the South Korean won closed onshore trade at 1,319.8 per dollar, marking a notable uptick of 0.84 per cent compared to its previous close at 1,330.9. This significant daily gain, the largest since December 14, contributed to a weekly strengthening of the won by 0.89 per cent, its most substantial increase since early February.
In the money and debt markets, March futures on three-year treasury bonds rose by 0.13 points to 104.83. Additionally, the yields on the most liquid three-year Korean treasury bonds and the benchmark 10-year yield both experienced declines of 4.7 and 6.2 basis points, respectively, further reflecting the prevailing optimism in the market.
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(With Reuters inputs)
12:54 IST, March 8th 2024