South Korea: Shares rise as battery shares jump on IRA

SOUTH Korean shares rose on Tuesday(Aug 9), as the passage of the Inflation Reduction Act by the US Senate boosted stocks of battery makers.

The benchmark Kospi rose 10.36 points, or 0.42 per cent, to close at 2,503.46.

Among the heavyweights, technology giant Samsung Electronics fell 1.32 per cent and peer SK Hynix fell 1.25 per cent, while battery maker LG Energy Solution rose 2.35 per cent.

The higher likelihood of the Inflation Reduction Act being approved in the US boosted battery shares and helped offset early Kospi declines in the morning, said Lee Kyoung-min, analyst at Daishin Securities.

The US Senate on Sunday passed a sweeping $430 billion bill intended to fight climate change, lower drug prices and raise some corporate taxes, a major victory for President Joe Biden that Democrats hope will aid their chances of keeping control of Congress in this year’s elections.

Foreigners were net buyers of shares worth US$26.74 million.

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The Kospi has fallen 15.92 per cent so far this year, but gained 3.8 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospiindex was 446.43 million shares. Of the total traded issues of 928, the number of advancing shares was 422. REUTERS