Stocks rise on earnings optimism, hope for the economy

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Stocks rise on earnings optimism, hope for the economy

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,271.38 points on Tuesday, up 24.91 points, or 0.77 percent, from the previous trading day. [NEWS1]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,271.38 points on Tuesday, up 24.91 points, or 0.77 percent, from the previous trading day. [NEWS1]

 
Stocks advanced for a second consecutive session Tuesday, backed by strong foreign and institutional buying that stemmed from optimism for strong corporate earnings and economic indicators for the second quarter. The won rose against the dollar.
 
The benchmark Kospi added 24.91 points, or 0.77 percent, to close at 3,217.38 points.
 
Trading volume was moderate at about 1.1 billion shares worth around 13.2 trillion won ($11.5 billion), with gainers outnumbering losers 643 to 207.
 
Foreigners bought a net 258 billion won, and institutions purchased a net 307 billion won, while retail investors offloaded 563 billion won.
 
The Kospi got off to a good start despite concerns about the toughened social distancing measures in greater Seoul.
 
Stocks extended their gains in the late morning as strong earnings reports by U.S. financial companies fueled optimism for earning hikes globally and at home.
 
Overnight, the big-three U.S. stock indexes set new records, with the Dow Jones Industrial Average adding 0.36 percent. The tech-heavy Nasdaq Composite and the S&P 500 advanced 0.21 and 0.35 percent, respectively, to new highs.
 
China's 32 percent surge in June exports also raised hopes for a quick economic rebound from the pandemic in major economies. The United States and China are Korea's two largest trade partners.
 
"There have been multiple boosters of [local] stock prices, such as the overnight U.S. rallies and strong won, as well as high hopes of the second-quarter earnings here and China's estimate-beating exports," Daeshin Securities analyst Lee Kyung-min said.
 
Samsung Electronics edged up 0.13 percent to 79,800 won, and chipmaker SK hynix increased 2.5 percent to 123,000 won.
 
Internet portal operator Naver surged 5.38 percent to a record 441,000 won, largely as brokerages forecast robust earnings in the second quarter.
 
Kakao shed 0.62 percent to 161,000 won, and pharmaceutical firm Samsung Biologics lost 0.57 percent to 865,000 won.
 
The Kosdaq gained 8.67 points, or 0.84 percent, to close at 1,043.31 won.  
 
The local currency closed at 1,145.4 won against the dollar, down 1.6 won from the previous session's close.
 
Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds added 4.1 basis points to 1.424 percent, and the yield on the benchmark 10-year government bond gained 0.6 basis point to 1.36 percent.

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