Stocks at 2-week high on eased U.S. default woes

Home > Business > Finance

Stocks at 2-week high on eased U.S. default woes

Published: 18 May. 2023, 17:57

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,515.4 points on Thursday, up 0.83 percent, or 20.74 points, from the previous trading day. [NEWS1]

Stocks rose to an over two-week high Thursday as investor sentiment was buoyed by rising hopes that Washington would reach a deal on the debt ceiling. The won rose against the dollar.

The benchmark Kospi rose 20.74 points, or 0.83 percent, to finish at 2,515.4. It is the highest closing point since 2,524.39 on May 2.

Trading volume was moderate at 558.3 million shares worth 7.64 trillion won ($5.72 billion), with winners far outnumbering losers 579 to 271.

Offshore investors scooped up 526.7 billion won worth of local shares, extending their net-buy streak to three straight sessions.

Institutions and individuals dumped a combined 525.9 billion won.

"The Kospi made a moderate rebound on the back of eased U.S. default woes," Choi Yun-ah, an analyst from Shinhan Securities, said. "Led by lifted U.S. market sentiment, foreign investors purchased local stocks for the third consecutive days, focusing on large-cap shares."

In Seoul, most market heavyweights were among the winners for Thursday.

Samsung Electronics rose 1.85 percent to 66,200 won, and chipmaker SK hynix also rose 1.85 percent to 93,600 won.

Home appliance maker LG Electronics added 0.98 percent to 113,000 won.

Hyundai Motor advanced 0.98 percent to 206,500 won, and Kia jumped 2.04 percent to 89,900 won.

Auto parts maker Hyundai Mobis went up 2.69 percent to 229,000 won.

Banking and retail sectors also closed up, with KB Financial Group rising 1.33 percent to 49,500 won, and Lotte Shopping climbing 1.36 percent to 82,200 won.

Pharmaceutical firms went south as SK Bioscience fell 1.78 percent to 77,400 won and Samsung Biologics declined 0.89 percent to 780,000 won.

Internet portal operator Naver slipped 0.23 percent to 212,500 won, and Kakao retreated 0.87 percent to 57,200 won.

The local currency ended at 1,334.2 won against the dollar, down 3 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds climbed 4.4 basis points to 3.317 percent, and the yield on the benchmark 10-year government bonds added 2.6 basis points to 3.567 percent.

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