Kospi hits 2-month high amid global rally

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Kospi hits 2-month high amid global rally

Published: 19 May. 2020, 18:32

Employees walk pass the screen in the dealing room of Hana Bank in Jung-district, central Seoul, Tuesday. [YONHAP]

Stocks jumped by more than 2 percent Tuesday, joining global stock markets in a rally amid renewed hope of a vaccine for the new coronavirus. The local currency sharply rose against the dollar.

The Kospi spiked 43.50 points, or 2.25 percent, to close at 1,980.61, extending its streak to a third day.

Tuesday marks the index's highest close since March 6, when the comparable figure was 2,040.22 points.

Trading volume was moderate at some 762 million shares worth about 11.7 trillion won ($9.55 billion), with gainers outnumbering losers 654 to 203.

The index got off to a firm start after reports of positive results from a Covid-19 vaccine test sparked stock market rallies in the United States and other major economies.

"The U.S. stock market closed sharply higher Monday after U.S. pharmaceutical company Moderna announced the test results of its coronavirus vaccine testing where all participants generated antibodies," Eugene Investment strategist Huh Jae-hwan said.

U.S. Fed Chairman Jerome Powell also helped boost investor sentiment throughout the globe, according to Noh Dong-kil, an analyst at NH Investment & Securities.

"It was the Fed that had led the stock market rally before Moderna announced the result of its clinical test. Chairman Powell said the Fed has not run out of ammunition and that it may take additional steps," Noh said.

In Seoul, foreign investors snapped their six-session selling streak to purchase a net 331 billion won, with institutions scooping up a net 842 billion won. Retail investors sold a net 1.18 trillion won, the largest sell-off in almost eight years.

Most large caps closed in positive terrain.

Samsung Electronics surged 3.07 percent to 50,300 won while chipmaker SK hynix advanced 1.97 percent to 82,700 won.

Automaker Hyundai Motor jumped 7.83 percent to 99,100 won, with its affiliate Kia Motors soaring 8.01 percent to 31,700 won.

The won closed at 1,225.30 won per dollar, down 7.10 won from the previous session's close.

The secondary Kosdaq was up 5.51 points, or 0.80 percent, to close at 696.36.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds lost 1.1 basis points to 0.876 percent, while the return on the benchmark 10-year government bond added 8.2 basis points to reach 0.72 percent.

BY KIM YEON-AH, YONHAP [kim.yeonah@joongang.co.kr]