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Stocks rise as Huawei given a 90-day reprieve

May 23,2019
Stocks extended a winning streak for a second consecutive session on Wednesday, supported by net buying by retail and foreign investors. The won appreciated against the dollar.

The benchmark Kospi added 3.61 points, or 0.18 percent, to close at 2,064.86. Trade volume was moderate at 500 million shares worth 4.52 trillion won ($3.78 billion).

The local stock market opened higher, tracking overnight gains on Wall Street.

Market sentiment improved after the United States decided to give a 90-day reprieve on curbs against China’s Huawei Technologies.

Yet the benchmark Kospi traded lower in the late morning and afternoon amid a media report that Washington was considering slapping another curb on Chinese video surveillance firm Hikvision.

Seo Sang-young, a researcher at Kiwoom Securities, said local market sentiment was hurt by the news about Hikvision.

“However, the index returned to positive terrain as China’s central bank announced an economic stimulus plan to cut the reserve requirement ratio for rural banks,” Seo said.

Individuals bought a net 73.7 billion won worth of stocks and foreign investors bought a net 4.5 billion won worth of shares. Institutions sold a net 92.6 billion won of stocks.

Samsung Electronics rose 0.81 percent to end at 43,500 won while SK Hynix, a global chipmaker, fell 1.99 percent to 68,900 won. Naver shed 1.31 percent at 113,000 won.

No. 1 automaker Hyundai Motor remained flat at 127,000 won and its smaller affiliate Kia Motors declined 0.36 percent to 41,150 won.

Bio shares closed higher, with Samsung BioLogics, a biopharmaceutical affiliate of Samsung Group, adding 3.40 percent to end at 304,000 won. Celltrion was up 1.93 percent to 184,500 won.

Shares of mobile carriers were mixed, with SK Telecom losing 1.94 percent to 253,000 won and rival KT decreasing 0.37 percent to 27,250 won. Shares of smaller mobile carrier LG U+ rose 1.01 percent to 14,950 won.

The Kosdaq rose 2.95 points, or 0.42 percent, to end the session at 706.93. The tech-heavy index was lifted by institutional and foreign buying of pharmaceutical shares and a 2.1-percent rise in Nasdaq Biotechnology Index overnight.

The won closed at 1,192.80 won against the dollar, down 1.20 won from the previous session’s close.

Bond prices ended mixed. The yield on three-year bonds rose 0.4 basis points to 1.67 percent. The yield on 10-year bonds fell 0.2 basis points to 1.83 percent.

BY KIM HE-YU, YONHAP [kim.heyu@joongang.co.kr]