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Local market rebounds from Monday’s losses

Aug 15,2018
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Korean stocks on Tuesday rebounded from the previous day’s massive losses as worries about the Turkish lira’s crash eased. The local currency appreciated against the U.S. dollar.

The benchmark Kospi added 10.46 points, or 0.47 percent, to close at 2,258.91, recovering from the 15-month low of 2,248.45 recorded in the previous session. Trading volume was light at 4.38 trillion won ($3.88 billion).

“On Monday, the Kospi lost a massive 1.5 percent. Now it seems to have regained its stability, although the roughly 0.5-percent gain is still small,” said Seo Sang-young from Kiwoom Securities. “The Turkish issue is not an economic one, but it is diplomatic and political, with investors worried that the Turkish situation can spill over to other regions.”

Last week, U.S. President Donald Trump doubled tariffs on Turkish steel and aluminum, accelerating the collapse of the Turkish currency, which has fallen by more than 40 percent this year alone.

Foreigners offloaded a net 10.9 billion won worth of local shares while individuals dumped a net 130.1 billion won. Institutions picked up a net 90.8 billion won.

Many big shares finished bullish. Top cap Samsung Electronics rose 0.22 percent to 45,150 won and No. 2 SK Hynix climbed 0.66 percent to 75,900 won.

Bio and pharmaceutical shares led the increase, with Samsung BioLogics gaining 2.24 percent to 456,000 won and Celltrion adding 0.19 percent to 261,000 won. Leading game developer NCSoft surged 8.15 percent to 385,000 won on positive second-quarter earnings. Netmarble advanced 0.82 percent to 123,500 won.

Air carriers finished in mixed terrain on news that the government will review the opening of duty-free shops in arrival terminals. No. 1 Korean Air fell 1.08 percent to 27,550 won, but runner-up Asiana Airlines edged up 0.12 percent to 4,185 won.

The secondary Kosdaq rose 6.29 points, or 0.83 percent, to 761.94 as foreigners went bargain-hunting for pharmaceutical shares after the index fell 3 percent in the previous session.

Game developers were winners in the tech-heavy index as well. Pearl Abyss climbed 4.01 percent to 246,400 won and Com2uS jumped 4.14 percent to 143,300 won.

The Korean won closed at 1,127.9 won against the U.S. dollar, down 6 won from the previous trading session.

Bond prices were mixed. The yield on three-year bonds added 1.2 basis points to 2.06 percent, and the return on 10-year bonds fell 0.2 basis points to 2.50 percent.


BY KIM EUN-JIN, YONHAP [kim.eunjin1@joongang.co.kr]