Kospi continues bullish run as investors remain optimistic

A screen capture shows the Kospi closing at 3.317.41, up 10.33 points, or 0.33 percent from the previous trading day. [SCREEN CAPTURE]

Stocks rose for the fifth straight session Wednesday as foreign investors continued to scoop up local stocks amid growing hopes for global economic recovery. The won rose against the dollar.

The Kospi rose 10.33 points, or 0.33 percent, to close at 3,137.41 points.

Trading volume was moderate at about 1.96 billion shares worth some 14.3 trillion won ($12.77 billion), with gainers outnumbering losers 544 to 292.

Foreign investors picked up a net 321.5 billion won worth of stocks for the fifth consecutive session, while institutions offloaded a net 325.1 billion won. Retail investors sold a net 17.8 billion won.

Analysts noted that the key index traded higher on hopes that the global economy could recover faster than expected from the pandemic-induced slump as countries accelerate their vaccination campaigns.

The International Monetary Fund raised this year's global economic growth forecast to 6 percent from its earlier estimate of 5.5 percent.

"The upward revision accounts for the faster-than-expected economic recovery from policy measures around the world as well as the impact in the second half of the year from additional fiscal measures by advanced economies and the rollout of vaccines, which will strengthen the momentum for economic recovery," Kiwoom Securities analyst Kim Yoo-mi said.

The Kospi, however, trimmed earlier gains in the afternoon as investors weighed a potential resurgence of the virus after South Korea reported the most daily coronavirus cases since early January.

Large caps closed mixed.

Samsung Electronics, which expects forecast-beating first-quarter earnings, shed 0.47 percent to 85,600 won, while No. 2 chipmaker SK hynix advanced 0.35 percent to 143,500 won.

Internet portal operator Naver declined 1.03 percent to 384,500 won, while rival Kakao slipped 0.37 percent to 542,000 won.

Pharmaceutical firm Samsung Biologics added 1.46 percent to 765,000 won, while Celltrion advanced 0.82 percent to 306,000 won.

Chemical firm LG Chem inched down 0.12 percent to 811,000 won, while rechargeable battery maker Samsung SDI gained 1.87 percent to 654,000 won.

Automaker Hyundai Motor remained unchanged at 230,000 won.

The Kosdaq gained 4.59 points, or 0.47 percent to close at 973.22.

The local currency closed at 1,116.3 won against the dollar, down 3.3 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year bonds added 0.1 basis points to 1.181 percent, and the return on the benchmark ten-year government bond declined 4.4 basis point to 1.65 percent.

BY LEE TAE-HEE, YONHAP [lee.taehee2@joongang.co.kr]