Stock gains continue for third day
Stocks ended higher for a third straight session Wednesday as investor sentiment was buoyed by expectations of robust earnings at U.S. tech firms. The won rose against the dollar.
The Kospi rose 13.47 points, or 0.70 percent, to close at 1,947.56. Trade volume was moderate at 1.97 billion shares worth 10.4 trillion won ($8.5 billion), with gainers outnumbering losers 570 to 272.
Investors are awaiting next week’s earnings results from major U.S. companies, such as Amazon and Microsoft, to take a cue in reorganizing their portfolios, analysts said.
“At the same time, they will be closely monitoring coronavirus infection rates and each government’s ongoing discussions of how to restart economic activity,” Roh Dong-kil, an analyst at NH Investment & Securities, said.
The U.S. Federal Reserve’s policy decision, due Wednesday, is also being watched by investors.
Institutions and foreigners bought a combined 484 billion won worth of stocks, offsetting individual stock selling valued at 483 billion won.
Large-cap stocks were mixed across the board.
Hyundai Motor rose 0.4 percent to 93,600 won, and its auto parts arm Hyundai Mobis surged 2.69 percent to 172,000 won. Kia Motors climbed 1.37 percent to reach 29,650 won. Chipmaker SK hynix climbed 0.4 percent to 83,700 won, steelmaker Posco climbed 3.9 percent to 184,500 won and national flag carrier Korean Air Lines gained 0.5 percent to 19,800 won.
Among decliners, Samsung Electronics fell 0.2 percent to 50,000 won, and wireless service provider SK Telecom declined 0.7 percent to 211,500 won.
The local currency closed at 1,218.20 won against the dollar, down 7.00 won from the previous session’s close.
The secondary Kosdaq was up 0.25 points, or 0.04 percent, to close at 645.18.
Bond prices, which move inversely to yields, closed higher. The yield on three-year bonds lost 2.9 basis points to 1.005 percent, and the return on the benchmark 10-year government bond lost 4.6 basis points to reach 0.61 percent.
BY KIM YEON-AH, YONHAP [firstname.lastname@example.org]
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