Synopsis
On January 20, Seoul's stock market saw a slight rise as investors await Donald Trump's inauguration as the 47th President of the United States. The KOSPI index gained 0.43%, reflecting mixed performances among major companies.Key Takeaways
- Seoul stocks opened higher ahead of Trump's inauguration.
- KOSPI index rose by 0.43% in early trading.
- Trump's trade policies could influence markets post-inauguration.
- POSCO Holdings and LG Energy Solution saw significant gains.
- Foreign currency deposits increased for the first time in three months.
Seoul, Jan 20 (NationPress) South Korean stocks opened slightly higher on Monday as the nation anticipates the inauguration of U.S. President Donald Trump as the 47th President.
The benchmark Korea Composite Stock Price Index (KOSPI) increased by 10.8 points, or 0.43 percent, reaching 2,534.35 in the initial 15 minutes of trading.
Trump is poised to commence his second four-year term with an inauguration ceremony taking place in Washington, DC.
He has cautioned about implementing protectionist trade policies, including potential increases in tariffs, following his inauguration.
In Seoul, major stocks displayed a mixed performance. The leading technology firm Samsung Electronics and its semiconductor competitor SK hynix reported no change.
Steel manufacturer POSCO Holdings rose by 3.85 percent, while prominent battery producer LG Energy Solution saw an increase of 2.57 percent.
Conversely, leading automotive company Hyundai Motor fell by 0.47 percent, and Hanmi Semiconductor, a key chip manufacturing equipment supplier, decreased by 1.24 percent.
The local currency was trading at 1,457.9 won against the U.S. dollar at 9:15 a.m., which is an increase of 0.4 won from the previous session.
Additionally, foreign currency deposits experienced their first rise in three months in December, as companies increased their dollar holdings amid rising uncertainties, according to the central bank.
As of the end of December, outstanding foreign currency deposits held by residents reached $101.3 billion, up by $2.87 billion from the month prior, based on data from the Bank of Korea (BOK).
This figure had declined for the prior two months, primarily due to weak corporate demand for U.S. dollar deposits amidst a significant depreciation of the Korean won.
Residents include local citizens, foreigners who have resided in South Korea for over six months, and foreign enterprises. The data excludes interbank foreign currency deposits.
December’s increase was attributed to companies securing additional fund deposits for import settlements, investments, and other purposes while tackling uncertainties both domestically and internationally, as stated by the BOK.
