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South Korean Shares Rise as Builders Rally on Policy Boost

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imgSouth Korean stocks climbed as construction companies surged following policy measures designed to address housing shortages in the capital region, although automotive stocks declined due to concerns about production disruptions following a raid at Hyundai's American manufacturing facility.

The main KOSPI index gained 9.38 points, representing a 0.29 percent increase to 3,214.50, at 0156 GMT.

Construction company stocks performed strongly, with Taeyoung Engineering & Construction surging 5.72 percent, GS Engineering & Construction advancing 1.71 percent, and Daewoo Engineering & Construction increasing 1.06 percent.

Hyundai Motor and its affiliate Kia Corp dropped 1.14 percent and 1.59 percent respectively following last week's raid at their American production plant, which heightened concerns about potential business risks.

Also Read: How Renault Korea Motors Brings the Modernity in the Automotive Industry

Other major index components showed mixed results, with semiconductor giant Samsung Electronics gaining 0.58 percent and competitor SK Hynix rising 1.83 percent. Battery manufacturer LG Energy Solution increased 0.44 percent.

Steel producer POSCO Holdings climbed 1.27 percent, while pharmaceutical company Samsung BioLogics edged up 0.10 percent.

Market breadth was positive among the 929 securities traded, with 533 stocks rising and 347 falling.

 

International investors purchased shares worth 124.6 billion won on a net basis.

The Korean won strengthened 0.03 percent against the dollar, trading at 1,388.0 compared to the previous session's close of 1,388.4 on the domestic settlement platform.

Also Read: Vietnam's Coffee Industry is Straining Challenges to Achieve Sustainable Development

In fixed income markets, September contracts for three-year government bond futures rose 0.04 point to 107.26.

The most actively traded three-year Korean government bond yield decreased 1.5 basis points to 2.452 percent, while the standard 10-year yield fell 1.1 basis points to 2.843 percent.

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