Stocks up again thanks to Fed's stance on ultra-easing

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Stocks up again thanks to Fed's stance on ultra-easing

Published: 30 Aug. 2021, 17:59

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,144.19, up 10.29 points, or 0.33 percent from the previous trading day. [NEWS1]

Stocks gained for a second consecutive session Monday as investors remained optimistic about the U.S. Federal Reserve's cautious stance on withdrawing its ultra-easing monetary policy. The Korean won rose against the dollar.

The Kospi advanced 10.29 points, or 0.33 percent, to close at 3,144.19 points.

Trading volume was moderate at about 595 million shares worth some 11.6 trillion won ($9.9 billion), with gainers outnumbering losers 561 to 285.

Foreigners sold a net 237 billion won, while institutions bought 252 billion won. Retail investors offloaded a net 58 billion won.

The Kospi performed strong, following Fed Chairman Jerome Powell's Friday address that the Fed could begin tapering its asset purchases this year, but that the move should be made separately from raising interest rates.

The key stock index trimmed part of its earlier gains as investors took to lock in profit from the two-day gains.

"Powell's dovish comments weakened the U.S. dollar and bank stocks, while adding gains to construction and steel," said Eugene Investment & Securities analyst Huh Jae-hwan.

Samsung Electronics gained 0.4 percent to end the day at 74,600 won, while chipmaker SK hynix closed unchanged at 103,500 won. Samsung SDI edged down 0.26 percent to close at 763,000 won.

Internet portal operator Naver moved up 1.9 percent to reach 428,000 won, while its rival Kakao added 1 percent to hit 151,000 won. Kakao Bank retreated 2.27 percent to 81,900 won.

Giant pharmaceutical firm Samsung Biologics closed flat at 947,000 won while SK Bioscience increased 3.45 percent to close at 299,500 won. Celltrion fell 1.19 percent to 291,000 won.

Automaker Hyundai Motor advanced 0.72 percent to 210,000 won, while Kia rose 0.61 percent to 82,600 won. Auto parts maker Hyundai Mobis rose 0.55 percent to 272,500 won.

Chemical firm LG Chem shed 1.66 percent to 770,000 won and steelmaker Posco surged 5.4 percent to end at 332,000 won.

The Kosdaq gained 8.33 points, or 0.81 percent, to close at 1,031.84 points.

The local currency closed at 1,167 won against the dollar, down 2.2 won from the previous session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 1.1 basis points to 1.398 percent, and the yield on the benchmark 10-year government bond fell 4.3 basis points to 1.31 percent.

BY SARAH CHEA, YONHAP [chea.sarah@joongang.co.kr]