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Kospi breaks a 4-day losing streak, up 0.45%

July 31,2019
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Stocks rebounded from their two-month low Tuesday, snapping a four-day losing streak as investors hunted for bargains. The won gained ground against the dollar.

The benchmark Kospi moved up 9.2 points, or 0.45 percent, to 2,038.68. Trading volume was moderate at 538 million shares worth 3.82 trillion won ($3.23 billion), with gainers outpacing losers at 584 to 248.

Analysts said Seoul shares gathered ground as investors scooped up oversold stocks after the index plunged to the lowest level in two months Monday. Investors have been avoiding risky assets due to growing uncertainties, including the latest trade dispute with Japan.

Japan is widely expected to officially announce the removal of Korea from its list of trusted trading partners later this week, on top of its existing export restrictions on three key materials to Korea.

“The U.S. market closed mixed ahead of several events, while the local market rebounded on the back of bargain hunting after closing sharply in the previous session,” said No Dong-gil, an analyst at NH Investment & Securities.

Foreigners scooped up a net 141 billion won worth of shares, and institutions net bought 2.5 billion won-worth. Individuals offloaded a net 145.5 billion won of shares.

Samsung Electronics moved up 0.98 percent to 46,550 won, and major chipmaker SK Hynix rose 2.47 percent to 78,900 won. LG Electronics dropped 1.60 percent to 67,500 won.

Tech shares were considered major victims of Japan’s apparent economic retaliation as Tokyo’s export curbs centered on materials vital for the production of semiconductors and displays.

Auto shares ended mixed. Hyundai Motor closed unchanged at 128,000 won, while its sister company Kia Motors rose 2.33 percent to 43,850 won. Auto parts maker Hyundai Mobis climbed 0.62 percent to 244,000 won.

Pharmaceutical firms mostly closed higher, with Samsung BioLogics advancing 1.28 percent to 276,500 won and Hanmi Pharmaceutical rising 1.4 percent to 290,500 won. Celltrion fell 1.12 percent to 177,000 won.

Naver was unchanged at 138,500 won, while Kakao fell 2.33 percent to 126,000 won.

The Kosdaq advanced 6.86 points, or 1.11 percent, to close at 625.64.

The local currency closed at 1,181.55 won against the dollar, down 1.95 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year bonds fell 0.5 basis points to 1.301 percent and the return on 10-year bonds dropped 0.3 basis points to 1.409 percent.

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