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Seoul stocks rebound after 3-day losing streak

May 29,2019
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Stocks rebounded Tuesday to snap a three-day losing streak thanks to a push from institutions and retail investors. The won fell against the dollar.

The benchmark Kospi rose 4.62 points, or 0.23 percent, to close at 2,048.83. Trade volume was high at 474 million shares worth 7.6 trillion won ($6.4 billion), with gainers outnumbering losers 585 to 262.

The local stock market opened lower in the morning on losses in tech and automotive shares, but it swung to positive terrain.

Analysts said investors are paying attention to this week’s rate decision by the Bank of Korea (BOK), which is widely expected to freeze the key rate at 1.75 percent.

All eyes are on whether some of the BOK’s monetary policy board members will speak about a rate cut amid concerns about the ongoing trade dispute between China and the United States.

“Some members have recently made dovish comments on the rate, so it’s reasonable to open a possibility,” said Kim Yu-mi, an analyst at Kiwoom Securities. “With growing downside risks at home and abroad, investors will cling to the possibility of a rate cut.”

Foreigners offloaded 764 billion won, the largest amount since Sept. 7, 2018, while institutional and retail investors scooped up a net 578 billion won and 194 billion won, respectively.

Large-cap shares traded mixed across the board.

Samsung Electronics was down 0.23 percent, while SK Hynix dipped 1.49 percent. LG Electronics inched up 1.17 percent to 77,500 won.

Hyundai Motor rose 1.11 percent to 136,400 won, but its smaller affiliate Kia Motors lost 1.80 percent to 40,900 won. Auto parts maker Hyundai Mobis inched down 0.91 percent to 217,000 won.

Pharmaceutical companies were mostly bullish, with Celltrion gaining 6.90 percent to 186,000 won and Samsung BioLogics moving up 1.03 percent to 294,000 won.

The secondary Kosdaq gained 13.09 points, or 1.90 percent, to close at 702.76. The index recovered over the 700 mark as foreigners and institutions mass purchased semiconductor stocks even though the U.S. stock market was closed overnight.

The local currency was trading at 1,185.80 won against the dollar, up 1.3 won from the previous session’s close.

Bond prices ended mixed. The yield on three-year bonds gained 0.2 basis points to 1.654 percent, but the return on 10-year bonds fell 0.4 basis points to 1.793 percent.

BY KO JUN-TAE, YONHAP [ko.juntae@joongang.co.kr]