Kospi jumps up as tensions continue to ease
The benchmark Kospi added 26.21 points, or 1.07 percent, to close at 2,479.98. Trade volume was high at 8.07 trillion won ($7.55 billion).
The local market got off to a strong start, taking a cue from gains on Wall Street on Tuesday as solid first-quarter earnings of some large U.S. companies prompted investors to pick up risky assets.
A strong flow continued throughout the session on the back of news that Mike Pompeo, the new U.S. secretary of state nominee, made a secret trip to Pyongyang a few weeks ago to meet North Korean leader Kim Jong-un to discuss the planned summit between U.S. President Donald Trump and Kim.
“Investors, particularly foreigners, seem to have harbored some uncertainties on the Korean economy due to geopolitical risks surrounding North Korea and bleak prospects for the global tech, semiconductor sector,” said Roh Dong-gin, an expert at Shinhan Investment. “Some of the latest news have helped alleviate worries.”
Foreign investors and institutions each bought a net 343.7 billion won and 52.9 billion won worth of local shares while retailers sold a net 388.1 billion won.
Large-cap stocks moved up across the board.
Market bellwether Samsung Electronics soared 2.76 percent to 2,568,000 won, and SK Hynix surged 2.17 percent to 84,600 won.
But bio stocks fell after experts warned of a possible bubble bursting in the bio industry following recent rallies.
Samsung BioLogics, Samsung’s health care unit, tumbled 2.18 percent to 539,000 won, and Celltrion, a major pharmaceutical firm, shed 1.9 percent to 284,500 won.
The secondary Kosdaq lost 7.90 points, or 0.88 percent, to 893.32. The tech-heavy market ended in negative terrain as investors embarked on profit-taking after the index passed the 900 mark last session.
Institutions and individuals each bought 4.2 billion won and 125.0 billion won, while foreigners offloaded a net 103.1 billion won.
The local currency closed at 1,068.7 won against the U.S. dollar, up 1.7 won from the previous session’s close.
Bond prices ended lower. The yield on three-year bonds gained 1.8 basis points to 2.20 percent, and the return on 10-year government bonds added 1.6 basis points to 2.65 percent.
BY KIM EUN-JIN, YONHAP [kim.eunjin1@joongang.co.kr]
with the Korea JoongAng Daily
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