Stocks close higher as chip gains counter steel, battery losses

Stocks closed higher Thursday, led by chip gains on hopes for a turnaround in the sector moving forward amid the Federal Reserve's quarter-percentage point rate hike overnight. The won fell against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,603.81 points on Thursday, up 0.44 percent, or 11.45 points, from the previous trading session. [YONHAP]

Stocks closed higher Thursday, led by chip gains on hopes for a turnaround in the sector moving forward amid the Federal Reserve's quarter-percentage point rate hike overnight. The won fell against the dollar.

The Kospi added 11.45 points, or 0.44 percent, to close at 2,603.81. Trading volume was heavy at 585.77 million shares worth 23.79 trillion won ($18.62 billion), with gainers outpacing losers 729 to 174.

Institutional and offshore investors bought a net 437.89 billion won and 78.9 billion won worth of shares, respectively, while individuals shed a net 506.06 billion won worth of shares.

"We've seen greater market volatility due mainly to a frenzy for battery shares," Kiwoom Securities analyst Kim Ji-san said.

The U.S. central bank raised interest rates to 5.50 percent Wednesday, catapulting the benchmark lending rate to its highest level since 2001. The Fed's latest decision pushed the gap between the key rates of Korea and the United States to an all-time high.

In Seoul on Thursday, large-cap stocks ended mixed as chip and tech gains offset battery and steel losses.

Samsung Electronics jumped 2.72 percent to 71,700 won after announcing plans to extend production cuts, and SK hynix surged 9.73 percent to 124,000 won.

Naver rose 6.98 percent to 211,500 won, and Kakao grew 5.86 percent to 50,600 won.

Carmakers saw mixed trading, with Hyundai Motor retreating 0.45 percent to 197,800 won while Kia climbed 0.61 percent to 83,100 won.

LG Energy Solution fell 6.9 percent to 540,000 won, and Samsung SDI retreated 5.83 percent to 662,000 won following recent gains.

Posco Holdings shed 5.71 percent to 594,000 won, and Posco Future M plunged 13.21 percent to 486,000 won.

The local currency closed at 1,277.7 won against the dollar, up 3.2 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 3.9 basis points to 3.587 percent, and the yield on the benchmark 10-year government bonds dropped 2.7 basis points to 3.863 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]