Markets extend winning streak on possible U.S. stimulus bill

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Markets extend winning streak on possible U.S. stimulus bill

Published: 05 Oct. 2020, 17:14

A screen shows the final figures for the Kospi and Kosdaq in a dealing room at KB Kookmin Bank in the financial district of Yeouido, western Seoul, on Monday. [YONHAP]

Shares jumped by more than 1 percent to extend their winning streak to a fourth session Monday, as investor sentiment improved on hopes for fresh economic stimulus in the United States. The won rose against the dollar.

The benchmark Kospi rose 30.11 points, or 1.29 percent, to close at 2,358.0.

Trading volume was moderate at about 746 million shares worth some 10.5 trillion won ($9 billion), with gainers outnumbering losers 647 to 211.

Foreigners bought a net 169 billion won, ending their seven-session selling streak, while retail investors sold a net 548 billion won. Institutions purchased a net 388 billion won.

The gains were largely attributed to optimistic statements by key U.S. officials related to the new $2.2 trillion stimulus proposal.

Over the weekend, U.S. President Donald Trump tweeted his support for the stimulus bill, with House Speaker Nancy Pelosi showing stronger confidence about the stimulus talks.

"The stock markets are paying attention to policy options that Trump can come up with [during his campaign]," Hana Financial Investment analyst Lee Jae-man said. "The increasing possibility of stimulus agreement seems to be holding up the stock market against the political uncertainties."

Most large caps closed higher in Seoul.

Market bellwether Samsung Electronics added 0.86 percent to 58,700 won, while No. 2 chipmaker SK hynix shed 0.95 percent to 83,200 won.

Hyundai Motor jumped 4.76 percent to 187,000 won, and its smaller affiliate Kia Motors spiked 7.68 percent to 50,500 won.

Steelmaker Posco surged 4.59 percent to 205,000 won.

Internet portal Naver advanced 0.67 percent to 298,500 won, and its rival Kakao added 1.65 percent to 370,500 won.

Chemical maker LG Chem climbed 0.76 percent to 659,000 won, and rechargeable battery maker Samsung SDI rose 0.69 percent to 436,500 won.

Pharmaceutical firm Samsung Biologics retreated 0.72 percent to 685,000 won, and Celltrion dropped 1.17 percent to 254,500 won.

The local currency closed at 1,163.4 won per dollar, down 6.1 won from the previous session's close.

The Kosdaq rose 10.24 points, or 1.21 percent, to close at 858.39.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds gained 3.7 basis points to 0.883 percent, and the return on 10-year bonds gained two basis points to 0.69 percent.

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