Seoul Stocks Surge Following Decision to Abandon Financial Investment Tax.


Seoul: South Korean stocks soared nearly 2 percent Monday, breaking a three-day decline, following the main opposition party’s agreement to abandon a proposed tax on financial investments. The local currency also saw a sharp rise against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) increased by 46.61 points, or 1.83 percent, closing at 2,588.97.

According to Yonhap News Agency, trade volume was slightly reduced at 367.8 million shares, valued at 7.9 trillion won (US$5.8 billion), with 619 stocks gaining and 254 losing. Foreign and institutional investors collectively purchased local stocks worth 370.4 billion won, while individual investors sold a net 384.1 billion won.

The KOSPI’s rally was attributed to the main opposition party leader’s agreement with the government’s decision to scrap the financial investment income tax. In the tech sector, Samsung Electronics saw a rise of 0.69 percent to 58,700 won, while its competitor SK hynix surged by 6.48 percent to 194,000 won.

The a
utomotive industry also experienced gains, with Hyundai Motor climbing 1.41 percent to 216,500 won, and Kia increasing by 3.29 percent to 97,400 won. The battery and bio sectors followed suit, with LG Energy Solution jumping 3.27 percent to 426,000 won and POSCO Future M rising 5.7 percent to 241,000 won. Bio companies Samsung Biologics and Celltrion increased by 1.9 percent and 3.48 percent, respectively.

In other sectors, Naver, an internet portal operator, rose by 3.01 percent to 175,700 won, and Korea Zinc, amid a management control battle, surged 8.07 percent to 1.09 million won. However, financial shares ended lower, with KB Financial and Hana Financial dropping by 1.2 percent and 1.31 percent, respectively.

The local currency was trading at 1,370.9 won against the U.S. dollar, marking an 8.5 won increase from the previous session. Bond prices, which are inversely related to yields, closed higher. The yield on three-year Treasurys fell by 0.4 basis points to 2.935 percent, and the yield on five-year g
overnment bonds edged down by 0.1 basis points to 2.994 percent.