Kospi extends winning streak to eighth session
Stocks closed higher Tuesday, extending a winning streak to an eighth consecutive session on hopes for economic recovery and ahead of the Fed meeting this week. The won sharply rose against the dollar.
The Kospi rose 4.63 points, or 0.21 percent, to close at 2,188.92. Trading volume was high at about 805.3 million shares worth some 14.5 trillion won ($12.1 billion), with losers outnumbering gainers 473 to 366.
The benchmark index extended gains every session since May 29, tracking Wall Street backed by hopes of a quick economic rebound from the coronavirus pandemic.
Market expectations ran high over the upcoming U.S. Federal Open Market Committee (FOMC) meeting, set for June 9 to 10, local time.
The FOMC has indicated that it will announce a set of additional stimulus measures to buoy the coronavirus-hit economy.
Institutions sold a net 396 billion won, and foreigners offloaded a net 21.2 billion won. Individuals purchased a net 411 billion won.
In Seoul, large caps finished mixed.
Samsung affiliates ended in positive terrain after a Seoul court rejected an arrest warrant for the heir of Samsung Group, which accounts for more than 20 percent of the main index's total market cap.
Samsung Electronics gained 1.09 percent to 55,500 won, Samsung Biologics added 1.81 percent to 676,000 won and Samsung SDI inched up 2.13 percent reaching 8,000 won.
Other large cap shares were in negative territory. LG Chem slid 0.35 percent to 432,500 won, Hyundai Motor lost 0.88 percent to 112,000 won and chipmaker SK hynix shed 1.32 percent to 89,800 won.
Shares of IT companies were also in bear territory. Naver failed to extend its winning streak and inched down 1.25 percent reaching 237,500. Kakao, the operator of the messenger app Kakao Talk, dipped 0.78 percent to close at 254,500 won.
The secondary Kosdaq inched up 0.10 basis points closing at 753.82.
The local currency closed at 1,197.70 won per dollar, up 7.10 won from the previous session's close.
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds shed 4.3 basis points to 0.861 percent, and the return on the benchmark ten-year government bond inched down 1.9 basis points to reach 0.88 percent.
BY KANG JAE-EUN, YONHAP [firstname.lastname@example.org]