Stocks rebound 1.8 percent after a four-day losing streak

Finance

Published: 05 Jul. 2022, 17:55

Stocks rebound 1.8 percent after a four-day losing streak

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,341.78 points on Tuesday, up 41.44 points, or 1.80 percent, from the previous trading day. [NEWS1]

Stocks bounced back Tuesday, snapping a four-day losing streak, as investors scooped up oversold stocks ahead of the quarterly earnings season. The local currency fell against the dollar.

The Kospi closed up 41.44 points, or 1.8 percent, to 2,341.78. The Kospi slid to a 20-month low Monday. Trading volume was light at 315.7 million shares worth 6.74 trillion won ($5.18 billion), with advancing stocks far outpacing declining ones 802 to 92.

"The market has recently been marked by a sharp decline, so a rebound is natural to some extent," said Kwak Byeong-ryeol, an analyst at Leading Investment & Securities.

"As we enter the second-quarter earnings season and have another FOMC meeting coming up later this month, investors want to search for clues as to whether the market is bottoming out," Kwak said.

The Fed could go ahead with another 0.75 percentage-point rate hike at the forthcoming FOMC, set for July 26 to 27, to curb decades-high inflation, according to analysts.

But a slew of decelerating U.S. economic indicators has raised expectations the Fed could soften its stance on the aggressive monetary tightening.

Foreigners bought a net 135.0 billion won worth of stocks and institutions a net 239.3 billion won, while retail investors sold off a net 389.5 billion won.

Samsung Electronics rose 0.18 percent to 57,200 won, with LG Energy Solution climbing 1.54 percent to 361,500 won.

Naver advanced 3.4 percent to 243,000 won, with Kakao jumping 5.73 percent to 72,000 won.

SK Bioscience spiked 24.87 percent to 122,500 won after a sharp rebound in Tuesday's Covid-19 infections fueled concerns over a resurgence. Hyundai Motor slipped 0.28 percent to 177,500 won and its affiliate Hyundai Mobis also fell 0.25 percent to 201,000 won.

The local currency ended at 1,300.25 won against the dollar, down 3.15 won from Monday's close.

The Kosdaq gained 28.22 points, or 3.90 percent, to close at 750.95 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds lost 13.0 basis points to 3.315 percent.

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