Stocks rebound after seven-session losing streak

Finance

Published: 16 Jun. 2022, 18:56

Stocks rebound after seven-session losing streak

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,451.41 points on Thursday, up 4.03 points, or 0.16 percent, from the previous trading day. [YONHAP]

Stocks rebounded slightly Thursday, ending their seven-day losing streak, as uncertainty over the future course by the U.S. Federal Reserve eased somewhat after its sharpest rate hike in almost three decades. The local currency rose against the dollar.

The Kospi added 4.03 points, or 0.16 percent, to close at 2,451.41, after erasing most of its earlier gains. The index hit an intraday high of 2,500.36.

Trading volume was moderate at 567.50 million shares worth 9.34 trillion won ($7.25 billion), with decliners outpacing gainers 435 to 426.

Foreign investors bought a net 146.7 billion won worth of shares, while individuals sold a net 156.9 billion won and institutions offloaded a net 18.7 billion won worth of shares.

The index got off to a strong start, tracking Wall Street gains after the Fed raised the key rate by 0.75 percentage points, the biggest increase since 1994.

Investors welcomed the move, as it met market expectations and, according to analysts, signaled the Fed's determination to fight inflation.

But many of the early gains were pared here as concerns were renewed over high-flying inflation and the potential impacts of the Fed's aggressive monetary tightening on global economic growth.

Finance Minister Choo Kyung-ho pointed to fears over growing market volatility and a global economic slowdown amid accelerating monetary tightening, vowing responses "with a sense of urgency."

In Seoul, Samsung Electronics rose 0.33 percent to 60,900 won, and LG Energy Solution surged 1.67 percent to 427,000 won.

LG Chem jumped 4.1 percent to 584,000 won, and Samsung SDI surged 3.98 percent to 549,000 won.

But SK hynix shed 0.51 percent to 97,400 won.

The local currency ended at 1,285.6 won against the dollar, down 4.9 won from the previous session's close.

The Kosdaq gained 2.74 points, or 0.34 percent, to close at 802.15 points.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds advanced 5.6 basis points to 3.730 percent, and the yield on the benchmark 10-year government bond dropped 19.1 basis points to 3.28 percent.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]