Seoul shares spike 1.8% on bargain hunting in defense, energy, IT sectors
South Korean stocks closed sharply higher Monday, driven by bargain hunting and big gains in the defense, energy and IT sectors. The local currency rose against the US dollar.
The benchmark Korea Composite Stock Price Index jumped 52.04 points, or 1.8 percent, to close at 2,946.66.
Trade volume was heavy at 718.1 million shares worth 14.3 trillion won ($10.5 billion), with winners outnumbering losers 619 to 278.
Retail investors and institutions net purchased 45.4 billion won and 252.9 billion won worth of local shares, respectively, while foreigners unloaded 322.4 billion won.
"The Kospi rebounded after only a one-day fall as retail investors moved to purchase shares at bargains," Lee Kyoung-min, an analyst at Daishin Securities, said, noting the tensions in the Middle East will likely have limited impact on the South Korean stock market in the mid-to-long term.
On Friday, major US indexes lost ground as Israel's airstrikes on Iranian military and nuclear facilities sapped investors' risk appetite. The Dow Jones Industrial Average lost 1.79 percent, the tech-heavy Nasdaq composite went down 1.3 percent, and the S&P 500 decreased 1.13 percent.
In Seoul, major chipmaker SK hynix jumped 5.31 percent to 248,000 won, while its rival Samsung Electronics shed 1.89 percent to 57,200 won.
Defense and energy shares were bullish in particular.
Hanwha Aerospace gained 2.75 percent to 970,000 won, Hyundai Rotem soared 6.32 percent to 198,600 won, and Hanwha Systems shot up 18.01 percent to 64,200 won.
Major nuclear power plant manufacturer Doosan Enerbility surged 9.16 percent to 59,600 won, and HD Hyundai Electric advanced 6.16 percent to 456,500 won.
IT shares also gained ground, with top internet portal operator Naver adding 4.49 percent to 209,500 won, and Kakao, the operator of the country's dominant mobile messenger, rising 3.3 percent to 53,200 won.
Shipbuilders were also strong, with HD Hyundai Heavy surging 5.03 percent to 449,000 won, and HD Korea Shipbuilding climbing 4.85 percent to 367,500 won.
The local currency was quoted at 1,363.8 won against the greenback at 3:30 p.m., up 5.8 won from the previous session. (Yonhap)
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