Trump’s optimism helps perk up the market

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Trump’s optimism helps perk up the market

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Korea’s main bourse ended higher Thursday as foreign investors welcomed signs of easing tensions on the Korean peninsula and upbeat prospects for tech companies’ earnings. The Korean won appreciated against the U.S. dollar.

The benchmark Kospi added 6.12 points, or 0.25 percent, to close at 2,486.1. Trade volume was high at 10.0 trillion won ($9.41 billion).

Though investors initially took to profit-taking after a rally in the previous session, the index ended with modest gains thanks to strong buying by foreigners.

Foreign investors bought a net 176.8 billion won along with individuals who picked up a net 65.5 billion won, which offset a sell-off by institutions of a net 228.9 billion won.

On Wednesday, U.S. President Donald Trump expressed confidence in an upcoming summit with North Korean leader Kim Jong-un, saying he is making his utmost efforts to make the meeting “very successful” during a press conference with Japanese Prime Minister Shinzo Abe.

“In line with the boom in the global semiconductor market, local tech firms are forecast to show decent results,” said Cho Seung-bin, an analyst at Daishin Securities

Large tech firms pulled up the index.

Market bellwether Samsung Electronics soared 2.76 percent to 2,639,000 won, and its smaller rival LG Electronics moved up 1.92 percent to 106,000 won. Top chipmaker SK Hynix also surged 3.9 percent to 87,900 won.

KB Financial Group surged 1.87 percent to 60,000 won on hopes for upbeat first-quarter earnings. After the market closed, the banking group announced its net profit in the first quarter rose 11.3 percent on-year to 968.2 billion won.

Bio stocks dived, as investor sentiment weakened after experts warned of a possible bubble bursting in the bio industry following recent rallies.

The secondary Kosdaq lost 10.59 points, or 1.19 percent, to 882.73. Pharmaceutical shares, which make up many of the tech-heavy index’s large-caps, were dragged down by fears of a bubble bursting.

Institutions and foreigners were net buyers, each purchasing 46.0 billion won and 46.1 billion won. Individuals offloaded a net 74.7 billion won.

The local currency closed at 1,061.5 won against the U.S. dollar, down 7.2 won from the previous session.

Bond prices, which move inversely to yields, ended higher. The yield on three-year bonds fell 0.1 basis points to 2.20 percent, and the return on 10-year government bonds shed 0.5 basis points to 2.65 percent.


BY KIM EUN-JIN, YONHAP [kim.eunjin1@joongang.co.kr]
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