Kospi rises for third session on Covid optimism

Finance

Published: 25 Aug. 2020, 18:26 Updated: 25 Aug. 2020, 19:02

Kospi rises for third session on Covid optimism

A screen shows the closing figure for the Kospi in a trading room at Hana Bank in Jung District, central Seoul, on Tuesday. [YONHAP]

Stocks extended gains to a third session on Tuesday, as optimism for coronavirus vaccines fueled hopes of an economic rebound. The won rose against the dollar.

The benchmark Kospi jumped 36.9 points, or 1.58 percent, to close at 2,366.73.

Trading volume was moderate at about 760 million shares worth some 13.4 trillion won ($11.3 billion), with gainers outnumbering losers 783 to 95.

Foreigners purchased a net 152 billion won, extending a buying streak for a third session, while retail investors sold a net 65 billion won. Institutions offloaded a net 123 billion won.

Investor sentiment improved on optimism for Covid-19 vaccine development and a slowdown in infections, analysts said.

"The easing Covid-19 cases in the United States increased investors' hopes for a [global] economic rebound," Samsung Securities analyst Seo Jeong-hoon said.

Florida's infection rate stabilized and New York reported the fewest hospitalized patients since late March.

Korea added 280 new Covid-19 cases on Tuesday, staying below 300 for the second consecutive day.

Optimism for an economic rebound also resulted after U.S. bio firm Moderna Inc. said it is close to making a deal on supplying about 80 million doses of Covid-19 vaccines to the European Union.

In Seoul, most large caps finished higher.

Samsung Electronics gained 0.53 percent to 56,400 won, and chipmaker SK hynix advanced 1.99 percent to 77,000 won.

Pharmaceutical firm Samsung Biologics shed 0.61 percent to 815,000 won, with Celltrion losing 1.13 percent to 306,500 won.

Chemical maker LG Chem climbed 1.57 percent to 713,000 won, and rechargeable battery maker Samsung SDI added 1.37 percent to 444,000 won.

Internet portal giant Naver added 1.56 percent to 325,000 won, with its rival Kakao climbing 0.26 percent to 381,000 won.

Automaker Hyundai Motor jumped 3.49 percent to 166,000 won, with its smaller affiliate Kia Motors shedding 1.63 percent to 43,000 won.

The Kosdaq rose 2.52 percent to close at 836.31.

The local currency closed at 1,185.1 won per dollar, down 4 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds added 0.1 basis points to 0.825 percent, and the yield on ten-year government bonds added 2.1 basis points to 0.65 percent.

BY CHEA SARAH, YONHAP [chea.sarah@joongang.co.kr]