Stocks on the rise as investors expect relief in U.S., China
Stocks closed sharply higher Tuesday, extending earlier gains on hopes for massive economic stimulus measures in major economies, including China and the United States, to minimize the fallout from the coronavirus outbreak. The local currency rose against the dollar.The benchmark Kospi surged 37.52 points, or 2.19 percent, to close at 1,754.64.
The index opened sharply higher, tracking overnight gains on Wall Street.
Investor sentiments were further boosted by hopes that China may soon take massive stimulus measures.
“To market investors, the key factor will certainly be the size of [China’s] stimulus package,” said Park Seok-jung, an analyst at Shinhan Financial Investment.
Park noted China may be moving to hold its annual political meetings in mid-April.
“At the meetings, China is expected to declare termination of its Covid-19 outbreak, pledge its implementation of a massive economic stimulus package and highlight its role in ending the spread of the disease and boosting the global economy,” he added.
Foreign investors continued to offload local shares, dumping a net 73 billion won to extend their latest selling streak to a 19th consecutive session. Institutions sold a net 291 billion won, while retail investors scooped up a net 387 billion won.
Most large caps closed in positive terrain.
Samsung Electronics shed 0.21 percent to 47,750 won, LG Electronics slid 0.62 percent to 48,200 won, and SK hynix lost 0.48 percent climbing down to 83,300 won.
Bio shares continued gains for two consecutive sessions. Samsung BioLogics surged 7.11 percent to 482,000 won and Celltrion spiked 23.78 percent to 229,000 won.
Auto shares were in positive territory. Hyundai Motor added 3.86 percent to 88,700 won, while Kia Motors soared 4.21 percent to 26,000 won. Hyundai Mobis, Hyundai group’s auto parts maker, added 3.04 percent to close at 169,500 won.
The secondary Kosdaq gained 26.96 points or 4.97 percent reaching 569.07.
Shares of medical firms continued a bull rally in the Kosdaq market. Celltrion Healthcare spiked close to the market cap by 30 percent, as well as Union Korean Pharm, which jumped 27.41 percent to reach 16,500 won.
The Korean won closed at 1,217.40 won per dollar, down 7 won from the previous session’s close.
BY KANG JAE-EUN, YONHAP [Kang.jaeeun@joongang.co.kr]
with the Korea JoongAng Daily
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