Investors turn cautious ahead of Chuseok, limiting KOSPI gains to 0.9%
KOSPI is displayed in the dealing room of Hana Bank in Seoul, Wednesday. The benchmark index closed at 7,080.92, up 0.9 percent from the previous session. Yonhap
KOSPI gave up most of its early gains Wednesday as investors adopted a wait-and-see stance on the final trading day before the Chuseok holiday.
The benchmark index closed at 7,080.92, up 0.9 percent from the previous session. The index opened nearly 2 percent higher but gave up most of its gains, extending a recent pattern of strong openings followed by weaker trading later in the day.
Foreign and retail investors sold a net 534.4 billion won ($393.7 million) and 1.42 trillion won in shares, respectively. Institutional investors bought a net 320.3 billion won.
SK hynix rose 1.2 percent to close at 1,862,000 won, while Samsung Electronics gained 3.25 percent to finish at 285,500 won.
U.S. President Donald Trump said at the U.N. General Assembly that the U.S. delegation had held talks with Iranian officials for about three hours. Iran also said it could reopen the Strait of Hormuz if the U.S. naval blockade is lifted, helping stabilize international oil prices and improve investor sentiment in early trading.
However, with the Korean stock market closed for the Chuseok holiday on Thursday and Friday, investors turned cautious ahead of several key events, including the U.S.-China summit and Micron's earnings release.
Semiconductor stocks remained strong, supported by continued momentum in artificial intelligence and data center investment. Investors piled into Samsung Electronics in particular, amid expectations of a special dividend. Investors must buy Samsung Electronics shares by Monday to be eligible for the special dividend, which is expected to be around 4,500 won per share.
Green energy stocks also posted notable gains on expectations of U.S. policy support, with OCI Holdings up 9.57 percent and Hanwha Solutions up 6.38 percent.
By contrast, nuclear power-related stocks came under profit-taking pressure. Doosan Enerbility fell 5.55 percent, while Hyundai E&C dropped 7.77 percent.
Meanwhile, the tech-heavy Kosdaq rose 1.21 percent to close at 844.48.
The won-dollar exchange rate closed at 1,358.4 won per dollar, up 0.2 won from the previous session.