Seoul stocks tad higher late Friday morning on chip gains
Summary
Seoul shares traded slightly higher late Friday morning as chipmaker gains offset concerns over renewed U.S. Treasury yield increases. The KOSPI rose 42.61 points, or 0.61 percent, to 6,894.69 at 11:20 a.m. Samsung Electronics climbed 3.04 percent on reports of a possible shareholder return package worth up to 110 trillion won, while SK hynix rose 3.61 percent after a buyback announcement. Kakao fell 10.72 percent after unveiling a plan to spin off its KakaoTalk-based messaging business into an AI-focused company.
Key Facts
- The KOSPI was up 42.61 points, or 0.61 percent, at 6,894.69 as of 11:20 a.m. Friday.
- The index had opened 1.35 percent lower before recovering earlier losses.
- Samsung Electronics rose 3.04 percent on reports that it could unveil a shareholder return package worth up to 110 trillion won later in the day.
- SK hynix rose 3.61 percent after announcing a share buyback program Wednesday.
- The Korean won was trading at 1,382.7 won against the U.S. dollar, up 13.3 won from the previous session’s close.
The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Friday. Yonhap
Seoul shares traded slightly higher late Friday morning as gains in major chipmakers on hopes for shareholder returns offset lingering concerns over renewed increases in U.S. Treasury yields.
After opening 1.35 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) recovered its earlier losses, rising 42.61 points, or 0.61 percent, to 6,894.69 as of 11:20 a.m.
U.S. Treasury yields resumed their upward trend Thursday (U.S. time), reversing much of the previous day's decline following the U.S. Treasury's announcement of an expanded bond buyback plan.
Overnight, the Dow Jones Industrial Average shed 1.32 percent, while the S&P 500 slipped 0.87 percent. The tech-heavy Nasdaq Composite Index fell 1 percent.
In Seoul, major chipmakers supported the broader market on continued expectations for shareholder returns.
Market bellwether Samsung Electronics rose 3.04 percent on reports that the chip giant could unveil a new shareholder return package worth up to 110 trillion won ($79.7 billion) later in the day.
Its chipmaking rival SK hynix rose 3.61 percent, extending its rally after announcing a share buyback program Wednesday.
Kakao plunged 10.72 percent after announcing plans to spin off its KakaoTalk-based mobile messaging business into a new company focused on artificial intelligence, while the surviving entity will oversee the group's investment operations.
The Korean won was trading at 1,382.7 won against the U.S. dollar as of 11:20 a.m., up 13.3 won from the previous session's close.
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