U.S. election result sends Seoul stocks to two-year high

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U.S. election result sends Seoul stocks to two-year high

A screen shows the closing figure for the Kospi in a trading room in Hana Bank in Jung District, central Seoul, on Monday. [NEWS1]

A screen shows the closing figure for the Kospi in a trading room in Hana Bank in Jung District, central Seoul, on Monday. [NEWS1]

Seoul stocks extended their winning streak to a sixth day to hit the highest point in more than two years on Monday as investor appetite for risky assets increased following Joe Biden's victory in the U.S. presidential election. The won surged to a 22-month high against the dollar.
 
The benchmark Kospi rose 30.7 points, or 1.27 percent, to close at 2,447.2, the highest since 2,468.83 points on June 12, 2018.
 
Trading volume was high at about 1.3 billion shares worth some 14.6 trillion won ($13.1 billion), with gainers outnumbering losers 745 to 110.
 
Foreigners bought a net 328 billion won, while retail investors sold a net 677 billion won. Institutions purchased a net 356 billion won.
 
Investors pinned hopes that a Biden presidency and Republican-controlled Senate would benefit local chip and battery suppliers.
 
"Investor sentiment grew aggressive amid easing uncertainties over the U.S. presidential election," Yuanta Securities Korea analyst Cho Byung-hyun said.
 
In Seoul, large caps closed mixed with battery makers and renewable energy stocks leading the advance.
 
Samsung Electronics added 0.17 percent to 60,200 won, while chipmaker SK hynix shed 0.35 percent to 86,000 won.
 
Chemical maker LG Chem rose 1.94 percent to 734,000 won, and rechargeable battery maker Samsung SDI spiked 6.81 percent to 533,000 won.
 
Pharmaceutical firm Samsung Biologics retreated 2.06 percent to 761,000 won, and Celltrion gained 2.7 percent to 285,000 won.
 
Internet portal giant Naver shed 1 percent to 298,000 won, while its rival Kakao edged up 0.27 percent to 371,500 won.
 
Hyundai Motor, the country's largest automaker, moved up 1.17 percent to 172,500 won, while steelmaker Posco advanced 2.63 percent to 234,000 won.
 
The Biden effect also continued to strengthen the won against the U.S. greenback, attracting foreign stock money to local financial markets.
 
The president-elect has supported large-scale fiscal spending and stimulus policies that would weaken the dollar.
 
The Kosdaq added 14.43 points, or 1.72 percent, to close at 851.21.  
 
The local currency closed at 1,113.9 won per dollar, down 6.5 won from the previous session's close.
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds added 1.8 basis points to 0.961 percent, and the return on the 10-year bond added 4.4 basis points to 0.81 percent.
 
BY CHEA SARAH, YONHAP   [chea.sarah@joongang.co.kr]
 

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