Stocks advance for a second day as some optimism returns

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Stocks advance for a second day as some optimism returns

Published: 29 Mar. 2023, 17:17

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,443.92 points on Wednesday, up 0.37 percent, or 8.98 points, from the previous trading day. [YONHAP]

Seoul shares finished higher for a second straight session Wednesday as investor anxiety about the global banking system eased. The won fell against the dollar.

The Kospi advanced 8.98 points, or 0.37 percent, to close at 2,443.92. The Kosdaq advanced 10.43 points, or 1.25 percent, to close at 843.94 points.

Trading volume was moderate at about 487 million shares worth about 8.6 trillion won ($6.6 billion), with gainers outnumbering losers 553 to 305.

Institutions and foreigners bought a net 329 billion won and 62 billion won worth of shares, respectively, while retail investors offloaded 334 billion won.

Overnight, U.S. stocks closed lower as traders shifted their attention back to the concerns of future rate hikes by the Federal Reserve from the global banking woes caused by the collapse of Silicon Valley Bank (SVB).

Market jitters were assuaged a bit after First Citizens BancShares came to the troubled SVB's rescue, and the U.S. regulator vowed backing for the takeover deal.

The U.S. chip maker Micron Technology logged lower-than-expected earnings Tuesday, failing to boost the sentiment for semiconductors despite its positive outlook for the sector in the long term.

In Seoul, top-cap shares ended mixed, with autos and battery makers leading the overall market advance.

Samsung Electronics shed 0.32 percent to close at 62,700 won, and SK hynix inched down 1.7 percent to 86,900 won.

Bio company Samsung Biologics declined 0.75 percent to 791,000 won.

Hyundai Motor added 1.86 percent to 180,400 won, and Kia jumped 3.38 percent to 79,500 won.

Battery maker LG Energy Solution gained 1.04 percent to 583,000 won, and Samsung SDI inched up 1.8 percent to 735,000 won.

The local currency closed at 1,302.7 won against the dollar, up 3.9 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds fell 0.4 basis points to 3.255 percent, and the yield on the benchmark 10-year government bonds climbed 3.0 basis points to 3.565 percent.

BY SOHN DONG-JOO, YONHAP [sohn.dongjoo@joongang.co.kr]