Kospi breaks record high following eased rollback concerns

Finance

Published: 07 Jun. 2021, 17:58

Kospi breaks record high following eased rollback concerns

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,252.12 points on Monday, up 12.04 points, or 0.37 percent, from the previous trading day. [NEWS1]

The stock market closed at an all-time high Monday as weaker-than-expected U.S. jobs data helped ease concerns over the potential rollback of the country's expansive monetary policy. The won rose against the dollar.

The benchmark Kospi advanced 12.04 points, or 0.37 percent, to close at 3,252.12 points, marking the highest closing ever.

Trading volume was high at about 1.7 billion shares worth some 18.8 trillion won ($16.9 billion), with losers outnumbering gainers 441 to 399.

Foreigners sold a net 187 billion won, while retail investors bought 66 billion won. Institutions purchased a net 118 billion won.

The Kospi got off to a bullish start as investors were relieved that an increase in U.S. non-agricultural jobs in May turned out to be slower than the market consensus.

The key stock index snapped its winning streak in the previous session ahead of the data's release, largely due to investors’ concerns that a fast job increase may prompt the Federal Reserve's discussion on tapering its asset-buying program as early as this month.

The index temporarily turned to losses in the late morning session as increased valuation pressure boosted investor appetite for profit-taking but finished higher on strong foreign buying.

"Whether the Kospi will continue its upward move or not will be determined after [U.S. consumer] price data and the U.S. Federal Open Market Committee [FOMC] meeting results come out next week," Hana Financial Investment analyst Lee Jae-sun said.

In Seoul, Samsung Electronics lost 0.36 percent to close at 81,900 won, and chipmaker SK hynix closed unchanged at 128,500 won.

Internet portal operator Naver increased 1.54 percent to 362,500 won, with pharmaceutical firm Samsung Biologics edging up 0.24 percent to 842,000 won.

Automaker Hyundai Motor closed unchanged at 241,500 won, and chemical firm LG Chem gained 0.62 percent to 814,000 won.

The Kosdaq lost 1.72 points, or 0.17 percent, to close at 985.86.

The local currency closed at 1,112.9 won against the dollar, down 3.6 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 1.9 basis points to 1.201 percent, and the return on the benchmark 10-year government bond fell 7.1 basis points to 1.55 percent.

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