finance news

S. Korean shares rise nearly 2% amidst feared economic slowdown

S. Korean shares rise nearly 2% amidst feared economic slowdown

South Korean stocks reportedly surged about 2% on Monday, as the US Federal Reserve is unlikely to raise interest rates by a full percentage point due to growing concerns about an economic slump. The Korean won grew in value against the US dollar.

The KOSPI (Korea Composite Stock Price Index) gained 1.90% or 44.27 points and closed at 2,375.25. Gainers outnumbered decliners 778 to 116 in a trading volume of 318.99 million shares valued at around ₩6.99 trillion ($5.31 billion).

Individuals and retailers sold shares amounting to ₩426.97 billion ($326 million) and ₩200.05 billion ($153 million), respectively, while foreign investors bought shares worth ₩633.45 billion ($484.47 million).

Seo Sang-young, analyst, Mirae Asset Securities Co., stated that the recent US stats on retail sales and inflation forecasts were not too bad, and concerns about drastic rate increases have subsided. Friday's significant gains on Wall Street and the increase in the futures created a favorable environment for the local market.

Some had expected that the Fed would hike the benchmark rate by 1 percentage point at its session next week to curb the rapidly rising inflation, but Fed officials claimed they would continue with the 75-basis-point increase.

Even though the US consumer price index increased 9.1%  in June, the highest level in 41 years, US consumers' inflation projections lowered in July because of a decline in oil prices.

The South Korean market leader Samsung Electronics rose by 3.17% to reach ₩61,900 ($47.33),  while SK Hynix, the second-largest chipmaker, gained 2.33% to ₩101,000 ($77.23).

Automobile manufacturer Hyundai Motor rose 1.09% to ₩185,500 ($141.84) on an impressive quarterly earnings outlook, while its subsidiary Kia rose 1.26% to ₩80,100 ($61.25).

Naver, an internet portal operator, increased by 6.71% to ₩246,500 ($188.48), while Kakao, Korea's biggest internet platform, increased by 3.85% to ₩72,800 ($55.66).

Financials improved as well. Shinhan Financial Group gained 3.74% to ₩34,650 ($26.46), while KB Financial Group increased by 4.77% to ₩46,150 ($35.29).

Meanwhile, bio stocks declined, with pharmaceutical firm Celltrion dropping 1.88% to ₩183,000 ($139.92) and Samsung Biologics falling by 0.86% to ₩810,000 ($619.34).

Source credit: https://www.koreaherald.com/view.php?ud=20220718000753

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and RunningAfrica. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.