South Korean Equities Rise on Rate Cut Optimism

Synopsis

On January 24, South Korean stocks increased as President Trump's calls for interest rate cuts ignited investor enthusiasm for riskier assets, while the local currency strengthened against the dollar. The market anticipates reopening after the Lunar New Year break.

Key Takeaways

South Korean stocks surged on Trump's rate cut proposal.
KOSPI closed at 2,536.8, up 0.85%.
Foreign investors net bought 203.8 billion won.
Major sectors: semiconductor, steel, biotech, entertainment.
Local currency traded at 1,431.3 won per dollar.

Seoul, Jan 24 (NationPress) The stock market in South Korea concluded the week on a positive note on Friday, spurred by US President Donald Trump's advocacy for interest rate reductions, which heightened interest in riskier investments. The nation's currency appreciated against the US dollar.

The stock exchange will resume trading next Friday following the Lunar New Year holiday, which lasts until Thursday.

The Korea Composite Stock Price Index (KOSPI) rose by 21.31 points, or 0.85 percent, finishing at 2,536.8, recovering from a 1.24 percent decline the day before, as reported by Yonhap news agency.

Trading activity was moderate, with 576.9 million shares traded, valued at 9.83 trillion won ($6.87 billion), and the gainers outnumbering the losers by 542 to 321.

Foreign investors net bought 203.8 billion won, while institutions acquired a net 70.6 billion won. In contrast, individual investors sold a net 380.1 billion won.

Earlier, US markets surged following Trump's call for interest rate cuts and rising oil prices during his video address at the World Economic Forum in Davos, Switzerland.

In Seoul's market, stocks in the semiconductor, steel, biotechnology, and entertainment sectors led the gains.

The major chipmaker Samsung Electronics remained stable at 53,700 won, whereas its competitor SK Hynix rose by 0.68 percent to 221,000 won.

The steel leader POSCO Holdings gained 0.77 percent to reach 261,500 won, while Hyundai Steel increased by 2.63 percent to 23,450 won.

Biotech leader Samsung Biologics surged 3.23 percent to 1,087,000 won, and Celltrion, a top pharmaceutical company, added 0.61 percent to 180,200 won.

Entertainment firm CJ ENM rose by 0.57 percent to 52,900 won, while Hybe, the label behind global sensation BTS, increased by 2.07 percent to 221,500 won.

On the downside, Hyundai Motor, the leading car manufacturer, fell by 1.91 percent to 205,000 won, with its affiliate Kia dipping 0.97 percent to 101,700 won.

By 3:30 p.m., the local currency was trading at 1,431.3 won against the US dollar, appreciating by 6 won from the prior session.

Bond prices exhibited mixed results, with yields moving in opposite directions. The yield on three-year government bonds decreased by 0.8 basis points to 2.570 percent, whereas the yield on five-year government bonds rose by 0.9 basis points, concluding at 2.704 percent.