Stocks extend rally as nations ease restrictions

A dealer walks past an electronic signboard in the dealing room of KB Kookmin Bank in Yeouido, western Seoul, Thursday. [YONHAP]

Stocks closed higher Thursday to extend their winning streak to a fifth session, the longest period of this year, on growing hope over the resumption of global business activities. The local currency fell against the dollar.

The Kospi added 8.67 points, or 0.44 percent, to close at 1,998.31. Trading volume was moderate at some 588 million shares, worth about 8.5 trillion won ($6.92 billion), with gainers outnumbering losers 463 to 363.

The index also touched the psychologically significant 2,000-point threshold for the first time in more than two months.

Seoul shares got off to a strong start as major economies eased virus-related restrictions.

The buying rally was also attributable to investors' hope over a new vaccine for Covid-19, though no clear timeline has been provided.

"U.S. tech firms led the overall market gains as they are actively penetrating deeper into the online segment, bracing for the post-pandemic era. This has also created a positive impact on the local market," said Seo Sang-young, a researcher at Kiwoom Securities.

Foreigners became net buyers for the third consecutive session, purchasing more shares than they sold at 77 billion won. Individuals also scooped up a net 290 billion won, while institutions dumped 390 billion won.

Chemical firm LG Chem shot up 4.14 percent to 377,500 won, and oil refiner SK Innovation moved up 2.9 percent to 106,500 won.

Pharmaceutical companies also closed bullish, with Samsung BioLogics rising 1.5 percent to 609,000 won and Hanmi Pharmaceutical increasing 1.02 percent to 246,500 won.

Portal operator Naver added 1.35 percent to reach 225,000 won, and the mobile messenger operator Kakao gained 2.59 percent to 237,500 won.

Samsung Electronics, on the other hand, edged down 0.1 percent to 49,950 won, and chipmaker SK hynix moved down 0.83 percent to 83,400 won.

The local currency closed at 1,230.90 won per dollar, up 0.60 won from the previous session's close.
The secondary Kosdaq was up 7.26 points, or 1.02 percent, to close at 716.02.

Bond prices, which move inversely to yields, closed higher. The yield on three-year bonds lost 1.1 basis points to 0.856 percent, and the return on the benchmark 10-year government bond lost 1.7 basis points to reach 0.67 percent.

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