Stocks up for a second day as U.S. stimulus package agreed

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Stocks up for a second day as U.S. stimulus package agreed

Stocks rallied for the second day in a row on Wednesday as investor sentiment improved on the back of stimulus measures. The won rose sharply against the dollar.

The Kospi soared 94.79 points, or 5.89 percent, to close at 1,704.76, extending gains from the previous session.


On Monday, the index spiked 8.6 percent, its sharpest daily increase since Oct. 30, 2008.

It was also the first time since March 16 that the index had closed above the 1,700-level.

Trading volume was high at 852 million shares worth 12.4 trillion won ($10 billion), with gainers far outpacing losers 872 to 33.

The Dow Jones Industrial Average on Tuesday skyrocketed 11.4 percent to close at 20,704.91, its biggest one-day gain since 1933, on hopes of a massive U.S. stimulus package.

The index received a further boost in the afternoon and touched 1,709.45 following the news that U.S. Senate leaders and the White House have reached an agreement to pass an estimated $2 trillion rescue package.

Foreigners extended their selling streak to a 15th consecutive session, offloading 333 billion won worth of stocks on the main bourse. Institutions dumped a net 105 billion won, while retail investors scooped up a net 451 billion won.

Large-caps were strong across the board. Samsung Electronics moved up 3.62 percent to 48,650 won, and chipmaker SK hynix advanced 7.37 percent to 84,500 won.

Carmaker Hyundai Motor spiked 12.97 percent to 84,500 won, and Hyundai Mobis skyrocketed 17.3 percent to 169,500 won. Kia Motors added 8.87 percent to reach 25,150 won.

Pharmaceutical firms were in negative territory, with Samsung BioLogics falling 0.21 percent to 475,000 won and Celltrion dropping 0.54 percent to 183,000 won.

The local currency closed at 1,229.90 won against the dollar, sharply down 19.7 won from the previous session’s close.

Bond prices, which move inversely to yields, fell. The yield on three-year bonds added 2.2 basis points to 1.146 percent, and the return on the benchmark 10-year government bond added 6.0 basis points to reach 0.84 percent.

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