Stocks rebound as Samsung Electronics signs huge deal

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Stocks rebound as Samsung Electronics signs huge deal

Published: 07 Sep. 2020, 17:14

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

Shares rebounded Monday, led by Samsung Electronics and some bio stocks. The won rose against the dollar.

The Kospi rose 15.97 points, or 0.67 percent, to close at 2,384.22.

Volume was moderate at about 1.2 billion shares worth some 16.9 trillion won ($14.2 billion), with gainers outnumbering losers 641 to 224.

Foreigners sold a net 247 billion won, while retail investors purchased a net 543 billion won. Institutions offloaded a net 297 billion won.

The Kospi rebounded from a 1.15 percent plunge the previous session, despite growing stock price valuation concerns.

"The tech losses on Wall Street affected Asia stocks in general but had limited influence over Korean stocks," Shinhan Financial Investment analyst Choi Yoo-joon said.

A slowdown in daily Covid-19 cases helped boost investor sentiment.

The country added 119 Covid-19 cases Monday, marking a sharp fall from 167 additional cases reported Sunday and the fewest in nearly a month.

On Friday, Korean authorities extended the enhanced social distancing scheme by a week to Sept. 13.

In Seoul, most large caps closed lower.

Samsung Electronics added 1.62 percent to 56,500 won, following news that the company will supply network equipment to Verizon in a 7.89 trillion won deal.

SK hynix shed 0.38 percent to 78,400 won.

Samsung Biologics gained 0.39 percent to 776,000 won, and Celltrion spiked 3.74 percent to 305,000 won.

Naver sank 4.26 percent to 314,500 won, with Kakao dipping 2.49 percent to 392,000 won.

Chemical maker LG Chem fell 3.1 percent to 720,000 won, and rechargeable battery maker Samsung SDI dropped 2.05 percent to 430,000 won.

Hyundai Motor, the country's largest automaker, fell 1.45 percent to 170,000 won, while Posco advanced 1.08 percent to 188,000 won.

The Kosdaq added 12.84 points, or 1.48 percent, to close at 878.88.

The local currency closed at 1,188.3 won per dollar, down 1.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds rose 4.3 basis points to 0.972 percent, and the yield on ten-year government bonds rose 8.2 basis points to 0.71 percent.

BY LEE JEE-YOUNG, YONHAP [lee.jeeyoung1@joongang.co.kr]