Stocks trade flat as institutions save the day

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,223.86 points on Tuesday, up 2.92 points, or 0.13 percent, from the previous trading day. [NEWS1]

Stocks snapped their four-day losing streak Tuesday amid still persistent woes over aggressive monetary tightening moves in major economies that could lead to a recession. The won sharply rose against the dollar.

After choppy trading, the benchmark Kospi rose 2.92 points, or 0.13 percent, to close at 2,223.86.

Trading volume was moderate at about 478 million shares worth some 7.8 trillion won ($5.5 billion), with losers outnumbering gainers 481 to 381.

Institutions bought a net 245.0 billion won of stocks, while foreigners sold a net 248.6 billion won and retail investors offloaded a net 16.3 billion won.

After opening a tad higher, the key index increasingly lost ground amid foreign sell-offs, dipping below the 2,200-point level for the first time in over two years.

But investors bought some oversold shares ahead of the market closing, helping the index stay in positive terrain.

Investor appetite for risky assets still remained subdued as aggressive monetary tightening moves in major economies stoked concerns about a global recession.

Last week, the Fed raised its benchmark interest rates by three-quarters of a point, its third increase in a row, to bring down inflation.

In Seoul, Samsung Electronics advanced 0.56 percent to 54,200 won, and Hyundai Motor gained 1.92 percent to 186,000 won.

Chipmaker SK hynix lost 0.61 percent to 82,000 won, with battery maker LG Energy Solutions dropping 0.56 percent to 444,000 won. LG Chem shed 0.35 percent to 569,000 won.
Kakao dropped 0.67 percent to 59,300 won, while Naver remained flat at 204,500 won.
Bio stocks closed mixed. Samsung Biologics lost 0.53 percent to 754,000 won, while Celltrion rose 0.61 percent to 165,500 won.

The won closed at 1,421.5 won against the dollar, down 9.8 from the previous session's close.

The Kosdaq gained 5.74 points, or 0.83 percent, to close at 698.11 points.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds dropped 16.9 basis points to 4.294 percent, and the yield on the 10-year government bond fell 9.6 basis points to 4.206 percent.

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