Stocks rebound as foreigners dip toes back in the water

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,246.47 points on Monday, up 28.52 points, or 0.89 percent, from the previous trading day. [YONHAP]

Stocks rebounded to snap a three-day losing streak Monday as investors sought to buy oversold stocks after the benchmark index took a breather the previous session amid escalating virus concerns. The won rose against the dollar.

The benchmark Kospi advanced 28.52 points, or 0.89 percent, to close at 3,246.47 points.

Trading volume was light at about 1.1 billion shares worth some 11.1 trillion won ($9.7 billion), with gainers outnumbering losers 707 to 168.

Foreigners bought a net 34 billion won, while retail investors sold 228 billion won. Institutions purchased a net 220 billion won.

Stocks started strong after the Kospi retreated 2.64 percent in the past three sessions amid rising concerns over the fourth wave of the pandemic in the country.

Stocks remained in positive terrain throughout the session on foreign buying, backed by market optimism that second-quarter corporate earnings would be better than expected amid signs of an economic recovery at home and abroad.

"Investor appetite for bottom-fishing has increased in the overall Asian stock markets," Mirae Asset Securities analyst Seo Sang-young said.

"They seem to be relieved by the U.S. Fed's confidence about the economic recovery," he added.

But investors remain wary of the worsening virus situation here as the greater Seoul area is under the strongest level of virus curbs. The country's daily Covid-19 infections topped 1,000 for the sixth consecutive day, and non-Seoul areas are reporting more cases.

Most large caps closed higher in Seoul.

Samsung Electronics advanced 0.38 percent to 79,700 won, and chipmaker SK hynix added 0.42 percent to 120,000 won.

Internet portal operator Naver increased 0.72 percent to 418,500 won, and pharmaceutical firm Samsung Biologics climbed 1.52 percent to 870,000 won.

Automaker Hyundai Motor gained 1.77 percent to 230,000 won, and chemical firm LG Chem grew 1.92 percent to 849,000 won.

The Kosdaq gained 5.71 points, or 0.55 percent, to close at 1,034.64.

The local currency closed at 1,147 won to the dollar, down 2.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 0.8 basis point to 1.383 percent, and the yield on the benchmark 10-year government bond gained 6.2 basis points to 1.36 percent.

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