Earnings prospects lifts Kospi for second day in a row
Stocks rose for the second straight session Tuesday on hopes for better earnings amid a global economic recovery. The won fell against the dollar.
The benchmark Kospi rose 33.49 points, or 1.07 percent, to close at 3,169.08.
Trading volume was moderate at about 1.7 billion shares worth some 16.1 trillion won ($14.3 billion), with gainers outnumbering losers 477 to 358.
Foreigners bought a net 446 billion won, while retail investors purchased 466 billion won. Institutions bought a net 9 billion won.
After a strong start, stocks expanded gains despite increased valuation pressure as brokerages projected strong quarterly performances of local big-name companies.
"The Kospi advanced on a buying binge by pension fund investors and hopes of better earnings in the first quarter (this year)," said Shinhan Investment analyst Kim Yoo-mi.
Investors were also relieved by the U.S. Federal Reserve chairman's overnight comments that a rate hike within this year is unlikely.
Chemical, bio and tech advances led the Kospi’s gain, while construction and steel slumped.
Samsung Electronics increased 0.96 percent to 84,000 won, and chipmaker SK hynix advanced 1.45 percent to 139,500 won.
Internet portal Naver added 0.78 percent to 388,500 won. Trading was suspended for mobile messenger operator Kakao over share splitting.
Carmaker Hyundai Motor moved up 1.77 percent to 230,000 won, and Kia gained 1.42 percent to 85,500 won. Steelmaker Posco lost 0.76 percent to 327,000 won
Chemical maker LG Chem jumped 6.24 percent to 868,000 won, and rechargeable battery maker Samsung SDI gained 5.35 percent to 690,000 won.
Pharmaceutical firm Samsung Biologics edged up 0.26 percent to 784,000 won, and Celltrion added 1.77 percent to 316,000 won.
Online game maker NCSoft gained 0.88 percent to 914,000 won, while its rival Netmarble fell 1.07 percent to 138,500 won.
The Kosdaq gained 9.72 points, or 0.97 percent to close at 1,010.37
The local currency closed at 1,125.9 won to the dollar, up 1.0 won from the previous session's close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year treasuries lost 0.3 basis points to 1.139 percent, and the yield on the benchmark ten-year government bond added 0.8 basis points to 1.67 percent.
BY LEE TAE-HEE, YONHAP [firstname.lastname@example.org]