Pandemic fears boost shares with 'untact' businesses
Stocks closed higher Thursday on strong gains by "untact" businesses prompted by fears of a prolonged pandemic, analysts said. The won stayed flat.
The Kospi rose 9.02 points, or 0.42 percent, to close at 2,167.90. Trading volume was moderate at about 609 million shares worth 12.8 trillion won ($10.7 billion), with losers outnumbering gainers 421 to 417.
Foreigners sold a net 33 billion won, while retail investors purchased a net 316 billion won. Institutions offloaded a net 258 billion won.
"Untact business shares are expected to fly high due to possibilities that the Covid-19 pandemic may remain uncontained for a long time," Daeshin Securities analyst Lee Min-ah said.
Kakao, the operator of mobile messenger app Kakao Talk, spiked 8.38 percent, setting a new record at 355,500 won. Internet giant Naver added 1.77 percent to 287,500 won.
South Korea added 50 new Covid-19 infections Thursday, marking a steady decline since Sunday when it confirmed more than 60 cases for a third consecutive day.
Tech share rallies have recently become a global phenomenon, analysts note.
Despite a new daily record number of virus cases in the U.S., the tech-laden NASDAQ Composite advanced 1.44 percent to close at a fresh record high of 10,492.50 on Thursday.
Large caps closed mixed in Seoul.
Samsung Electronics shed 0.38 percent to 52,800 won, and SK hynix dipped 0.84 percent to 83,000 won.
Samsung BioLogics rose 0.68 percent to 741,000 won, with Celltrion surging 4.01 percent to 324,500 won.
Hyundai Motor stayed flat at 99,600 won while LG Chem spiked 5.07 percent to 539,000 won.
The local currency closed at 1,195.50 won against the U.S. greenback, unchanged from the previous session's close.
The secondary Kosdaq added 6.94 points, or 0.91 percent, to close at 772.90.
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds rose 0.1 basis points to 0.84 percent, while the return on the benchmark ten-year government bond added 1.9 basis points to 0.66 percent.
BY CHEA SARAH, YONHAP [email@example.com]
More in Finance
Market puts Covid-19 in rearview mirror, aims for new records
Mirae Asset posts highest quarterly earnings since 2016 merger
Optimism reigns for 4th day as stocks rally
Kakao Bank's second quarter profit jumps almost nine-fold
Stocks rise to a near two-year high on U.S. stimulus hopes