Stocks rise as markets wind down for Lunar New Year closure

Screens in Hana Bank's trading room in Jung District, central Seoul, show Thursday's market. The Kospi closed at 2,620.32 points, up 0.41 percent from the previous trading session. [YONHAP]

Korean stocks closed higher for a second consecutive session on Thursday ahead of the Lunar New Year holiday. The local currency lost slight ground against the dollar.

The Kospi added 10.74 points, or 0.41 percent, to close at 2,620.32.

Trade volume was heavy at 422.7 million shares worth 12.2 trillion won ($9.18 billion), with gainers slightly outnumbering losers 451 to 436.

Foreign investors remained net buyers for a seventh consecutive session, net purchasing 294.7 billion won worth of local shares, with institutions scooping up 411.4 billion won. Retail investors offloaded 709.7 billion won.

The index opened higher tracking overnight gains on Wall Street. Global investment banks there expressed hopes in a recent survey that the U.S. Federal Reserve might start slashing interest rates in the second quarter.

Some market participants are betting that the Fed will cut rates in May, as U.S. Fed Chairman Jerome Powell indicated that rate cuts in March are unlikely due to inflation in the January news conference following the rate-setting meeting.

Large caps closed mixed.

Market bellwether Samsung Electronics shed 1.20 percent to 74,100 won, while No. 2 chipmaker SK hynix surged 3.48 percent to 142,800 won.

Top automaker Hyundai Motor gained 2.04 percent to 250,000 won, but its smaller affiliate Kia lost 1.31 percent to 113,200 won.

Leading battery maker LG Energy Solution advanced 2.07 percent to 394,000 won, while top pharmaceutical firm Celltrion added 0.34 percent to 179,600 won.

The Kosdaq closed up 1.81 percent at 826.58, led by foreign investors that net purchased 141.7 billion won. Retail and institutional investors unloaded 112 billion won and 22.4 billion won, respectively.

Cathode producer EcoPro BM, No. 1 by Kosdaq market cap, closed up 5.64 percent to 243,500 won, while the No. 2 EcoPro soared 11.92 percent to 648,000 won.

Rainbow Robotics, a robot platform company 14.83 percent owned by Samsung Electronics, surged 11.29 percent to 168,500 won.

The local currency closed at 1,328.20 won against the greenback, down 0.40 won from the previous session's close.

Korea’s stock market will close from Friday through Monday due to Lunar New Year. It will reopen on Tuesday.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]