Kospi extends winning streak, jumping up 1 percent
Stocks rose by more than 1 percent Tuesday, extending a winning streak to a third consecutive session on hopes for economic reopening, despite uncertainties from the spreading protests against police violence in the United States. The won fell against the dollar.
The benchmark Kospi rose 22.11 points, or 1.07 percent, to close at 2,087.19. Trading volume was heavy at about 985.1 million shares worth some 10.1 trillion won ($8.2 billion), with winners outnumbering losers 639 to 195.
The growing hopes for economic reopening boosted investor sentiment in the face of growing unrest in the United States and the escalating Sino-American tensions.
"We are still seeing market expectations that the post-lockdown economic recovery will pick up down the road," said Kim Yong-gu, an analyst at Hana Financial Investment.
Among gainers, shipbuilders outshined others on news that big-three players here have landed a mega-deal to build LNG carriers.
Most other large caps finished in positive terrain.
Samsung Electronics gained 0.39 percent to 51,400 won, while SK Hynix slid 0.36 percent to 83,300 won. Pharmaceutical firm Samsung Biologics stayed flat at 629,000 won, but Celltrion dipped 1.32 percent to 224,500 won.
Auto shares added gains. Hyundai Motor jumped 2.50 percent to 102,500 won, with its smaller affiliate Kia Motors spiking 5.49 percent to 36,500 won.
Shares of banks were in positive territory after the Bank of Korea lowered the country's base rate to a historical low of 0.5 percent. Woori Financial Group, increased by 6.36 percent and the Industrial Bank of Korea risen by 6.13 percent.
Securities firms and insurance companies also benefited from an increase in liquidity. Kiwoom Securities added 8.36 percent to close at 89,400 won,Hanwha Investment & Securities increased by 5.08 percent and Samsung Securities inched up 4.22 percent.
Among Insurance companies, Samsung Fire & Marine Insurance gained the most with 8.85 percent followed by DB Insurance adding 6.35 percent.
The secondary Kosdaq inched up 7.86 basis points or 1.07 percent to close at 743.58.
The local currency closed at 1,225.40 won per dollar, up 0.40 won from the previous session's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds rose 2.0 basis points to 0.851 percent, and the return on the benchmark ten-year government bond inched down 0.6 basis points to 0.65 percent.
BY KANG JAE-EUN, YONHAP [firstname.lastname@example.org]