Seoul stocks rebound as investors look for bargains
Shares rebounded Tuesday morning from a decline of over 1 percent the previous session, largely due to investors' hunting for undervalued heavyweights and the government's record budget proposal for next year. The won rose against the dollar.
The benchmark Kospi rose 23.38 points, or 1.01 percent, to close at 2,349.55.
Trading volume was high at about 1.1 billion shares worth some 16.1 trillion won ($13.6 billion), with gainers outnumbering losers 567 to 279.
Foreigners dumped a net 209 billion won, selling for a fourth consecutive session, while retail investors purchased a net 241 billion won. Institutions offloaded a net 55 billion won.
"Investors seem to have taken on a bargain hunting drive after stocks sank yesterday due to the Morgan Stanley Capital International (MSCI) index rebalancing," said Lee Young-gon, an analyst at Hana Financial Investment.
Local analysts also said investor sentiment strengthened as the government proposed a record 555.8 trillion won budget for 2021.
A recent surge in new Coviid-19 cases, however, still poses a risk for local financial markets.
The country's total caseload surpassed the 20,000 mark for the first time since the country reported its first case on Jan. 20.
In Seoul, most large caps traded higher.
Market bellwether Samsung Electronics added 0.37 percent to 54,200 won, with No. 2 chipmaker SK hynix edging up 0.13 percent to 75,200 won.
Internet portal giant Naver went up 0.62 percent to 324,500 won, while its rival Kakao lost 1.35 percent to 401,500 won.
LG Chem gained 0.41 percent to 743,000 won, and EV battery maker Samsung SDI advanced 0.44 percent to 454,500 won.
Samsung Biologics rose 0.39 percent to 781,000 won, and Celltrion added 0.34 percent to 298,000 won.
Hyundai Motor jumped 1.98 percent to 180,000 won, and Posco gained 1.08 percent to 186,500 won.
The Kosdaq added 5.13 points, or 0.6 percent, to close at 853.37.
The local currency was trading at 1,183 won against the dollar, down 4.8 won from the previous session's close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds added 3.9 basis points to 0.979 percent, and the yield on ten-year government bonds lost 1.3 basis points to 0.70 percent.
BY LEE JEE-YOUNG, YONHAP [firstname.lastname@example.org]