SEOUL: Seoul shares closed slightly higher on Friday, driven by retail buying amid diminishing expectations for rate cuts by the Federal Reserve, while the Korean won fell to its lowest point in nearly four months against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index rose by 2.24 points, or 0.09 percent, settling at 2,583.27. Despite the day’s gains, the main index recorded a 0.4 percent decline over the week. Trading volume was moderate with 454.58 million shares exchanged, amounting to 10.14 trillion won, approximately US$7.3 billion, as losers outnumbered gainers 617 to 258.
Institutional and individual investors purchased stocks worth a combined 375 billion won, which countered foreign selling that totaled 388 billion won. Large-cap stocks showed mixed performances. SK hynix Inc., Korea’s second-largest chipmaker, saw a 1.4 percent increase to 201,000 won. KT and G Corp., the leading tobacco company, rose by 2 percent to 111,600 won. Hyundai Mobis Co., a major
auto parts manufacturer, gained 2.6 percent to 256,500 won, while state-run Korea Gas Corp. edged up 0.3 percent to 40,350 won.
Korea Zinc’s stock surged 10 percent to 1,253,000 won, as investors anticipated the results of a share buyback that concluded on Wednesday amid a control dispute over the world’s largest zinc smelter. This price level, significantly above the 890,000 won buyback offer, suggests expectations of a higher offer price as the control battle intensifies. The company is embroiled in a takeover battle against MBK Partners, a private equity firm, and Young Poong Corp., the largest shareholder of the smelter. In a recent tender offer, Young Poong and MBK acquired a 5.34 percent stake in Korea Zinc at 830,000 won each, increasing their combined stake to over 38 percent. Chairman Choi and his family hold a 15.6 percent stake in Korea Zinc, with friendly shares, including the Choi family’s, estimated to total between 34 and 36 percent. Korea Zinc is expected to announce the buyback results on Mo
nday.
In contrast, several key stocks declined. Samsung Electronics Co., a market bellwether, fell by 1.2 percent to 55,900 won. Hyundai Motor Co., the top carmaker, dropped 1.3 percent to 225,500 won. Korea Electric Power Corp., the state utility, decreased by 1 percent to 22,800 won, and Amorepacific Corp., a leading cosmetics firm, saw a significant decline of 5.3 percent to 117,300 won.
The Korean won was trading at 1,388.70 against the U.S. dollar at 3:30 p.m., marking the lowest level since July 3, and representing an 8.5 won decrease from the previous session. Bond prices closed higher, with the yield on three-year Treasurys falling by 0.9 basis points to 2.882 percent, and the yield on five-year government bonds declining by 1.5 basis points to 2.941 percent.