Stocks snap a 3-day losing streak as Russia tensions ease

Finance

Published: 16 Feb. 2022, 18:32

Stocks snap a 3-day losing streak as Russia tensions ease

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,729.68 points on Wednesday, up 53.14 points, or 1.99 percent, from the previous trading day. [YONHAP]

Stocks rebounded nearly two percent Wednesday, snapping a three-day losing streak, as Ukraine tensions eased. The won increased against the U.S. dollar.

The benchmark Kospi surged 53.14 points, or 1.99 percent, to close at 2,729.68 points.

Trading volume was moderate at about 415 million shares worth 8.3 trillion won ($6.9 billion), with losers far outnumbering gainers 832 to 64.

Foreign and retailer investors sold a net 43.7 billion won and 207.8 billion won, respectively, while institutions alone scooped up 225.6 billion won.

The index opened higher after U.S. market closed strong on gains in tech shares amid eased tensions over Russia's possible invasion of Ukraine. Russia indicated it had withdrawn some of its troops from the border.

"Partial pullout of Russian troops acted positively to boost investor sentiment," said HI Investment & Securities analyst Park Sang-hyun, adding falling oil prices also buoyed demand for risky assets.

Analysts said the tensions were far from being completely resolved, and the market may face downward momentum until the March meeting of the Federal Open Market Committee.

Most large-cap shares closed higher.

Samsung Electronics closed 1.49 percent higher at 74,800 won, and chipmaker SK hynix increased 2.76 percent to 139,500 won. LG Energy Solution went up 0.89 percent to 455,500 won after a choppy session.

Internet portal operator Naver increased 1.88 percent to 324,500 won, and LG Chem jumped 4.98 percent to 653,000 won, with Kakao adding 4.08 percent to 91,900 won.

Among losers, leading game maker NCSoft went down 4 percent to a 52-week low of 492,500 won following weak earnings reports.

The local currency closed at 1,197.6 won against the dollar, down 2.2 won from the previous session's close.

The Kosdaq gained 38.23 points, or 4.55 percent, to close at 878.15 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds lost 1.8 basis point to 2.325 percent, and the yield on the benchmark 10-year government bond gained 5.9 basis points to 2.04 percent.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]